Bank of Baroda on August 21 cancelled the auction of Sunny Deol’s property which houses Sunny Super Sound post-production studio, preview theatre and his office at Juhu in Bombay. The auction was scheduled for September 25, and a public notice for the same was issued in newspapers on August 20.
The reserve price for the 600-square-metre plot was fixed at Rs. 51 crore. Sunny Deol, the owner of the plot, had defaulted on repayment of a loan of Rs. 56 crore taken by mortgaging the plot land, and interest.
The bank gave two primary reasons for the cancellation: the total dues were not explicitly specified, and the sale notice was based on the symbolic possession of the property, following Rule 8(6) of the Security Interest (Enforcement) Rules, 2002. This rule requires lenders to provide a 30-day notice to allow borrowers an opportunity to repay their debt. It is also learnt that the actor had taken steps to settle the dues, which is permissible under law as borrowers have the right to redeem the security by paying the outstanding amount at any time before the sale of the security.