The process of selling Sunny Deol’s villa, which is held by the actor and current BJP member, at public auction to recoup debts totaling 56 crore was halted by Bank of Baroda on Monday for technical reasons, the company announced the day before.
First, the total amount owed did not identify the precise amount of debt that needed to be collected, according to a statement from the Bank of Baroda. Second, in accordance with Rule 8(6) of The Security Interest (Enforcement) Rules 2002, the sale notice was based on a hypothetical possession of the property. On August 1, 2023, the Bank filed an application with the Chief Metropolitan Magistrate requesting physical possession, which is currently awaiting approval. Once physical possession is obtained, sale proceedings will be started in accordance with the SARFAESI Act because the unit is operating as the borrower has passed it to us.
According to the sale notice published on August 20, 2023, which informed the borrower and guarantors that they had the right to redeem the securities by paying the outstanding dues, costs, charges, and expenses at any time before the sale is conducted, the borrower has contacted the bank in the interim to settle the debt. As a result, the sale notification is withdrawn in accordance with the customary industry practice used in other situations.
Sunny Deol has been in default on a 55.99 crore loan from the bank, interest and penalty, since December 2022. His most recent film, Gadar 2, has made over 300 crore at the box office since its release last week.
The bank, which has seized the property, set the reserve price for the auction at 51.43 crore and required a 5.14 crore earnest money deposit as of Sunday’s notice.
According to the auction notice, Sunny’s actor-politician father Dharmendra is the personal guarantor of the debt, and the 599.44 square meter property also houses Sunny Sounds, which is owned by the Deols and is the corporate guarantee to the loan.
The letter also said that, in accordance with the rules of the Sarfaesi Act 2002, the Deols had the option of paying the bank’s debts in order to halt the auction.
Since winning the Gurdaspur seat in Punjab in 2019 by a landslide margin against the incumbent Congress member Sunil Jhakar, Sunny Deol has been serving as the BJP’s representative there. Another actor, Vinod Khanna, represented the seat for the Congress for a long time.
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