A Luxury Bungalow in Juhu located next to 'Jalsa' is up for Auction

A luxury Bungalow in the neighborhood of Bollywood king Amitabh Bachchan near Juhu, named as Jalsa is all set to be auctioned very soon. Foreign Multinational bank, Deutsche Bank has put the bungalow under auction with a reserve price of Rs. 25 crore.

The carpet area of the bungalow is measuring 1,164 sqft along with open space of 2,175 sqft. According to the bank, the date of the auction was selected on 27^th March. The bungalow will be auctioned under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002.

The public notice states that, the bank had sent a demand notice in April 2022 and called all the borrowers and co-borrowers Seven Star Satellite Pvt. Ltd along with others to repay the outstanding amount of Rs. 12.89 crore within 60 days.

Later, in the public notice, Deutsche Bank declared that, the borrowers and co-borrowers failed to repay the outstanding amount and also the bank has undertaken possession of the property mortgaged with it. The bank has set the reserve price of the auction which will take place on March 27^th is Rs. 25 crore and the EMD amount is Rs. 2.50 crore.

According to the norms of Real Estate, when the borrowers are unsuccessful in paying the outstanding amount, bank sells the properties in auction at discounted price and hence the prospective buyers can manage to get a good deal when they purchase the property.

Founder of Hecta, Sridhar Samudrala quoted, "Banks have a variety of properties to sell, which they repossess against loan defaults. They sell at usually at 15 percent to 30 percent discount from the market price. In this particular case, a similar bungalow of similar size in the surrounding of Juhu beach would easily cost around Rs. 35 or 40 crore."

Previously, in another big ticket deal in Mumbai real estate market, Managing Director of Macleods Pharmaceuticals, Girdhari Lal Bawri acquired a 3,600 sqft bungalow on an over 7,000 sqft plot in Vile Parle area of Mumbai for Rs. 101 crore in February 2024.

This heavy deal was followed by Bollywood Actor John Abraham’s recent purchase of a 5,416 sqft bungalow in Khar area of Mumbai which is worth Rs. 70.83 crore.