Interview Times In the aftermath of retracting the auction plan for the villa owned by BJP Member of Parliament (MP) and actor Sunny Deol, the Bank of Baroda has provided an explanation on Twitter, citing technical reasons for the decision.
The Bank of Baroda had initially advertised the auction in newspapers, only to reverse the decision the following day, citing ‘technical reasons’, regarding the auction of Sunny Deol’s Mumbai property. The bank had stated that the auction was prompted by non-payment of a loan amounting to approximately Rs 56 crore, along with interest.
The reversal drew criticism from various quarters, including the All India Bank Employees’ Association (AIBEA) and the Congress party. The AIBEA’s General Secretary, C.H. Venkatachalam, implied that the bank’s actions were influenced by political considerations akin to the BJP’s approach to phone banking.
Subsequently, the Bank of Baroda issued a tweet explaining the technical aspects behind its decision. The bank outlined that the total dues weren’t explicitly mentioned, leading to ambiguity in the recovery amount. Furthermore, the initial sale notice was based on symbolic possession under Rule 8(6) of The Security Interest (Enforcement) Rules 2002. The bank had applied for physical possession of the property on August 1, 2023, with the Chief Metropolitan Magistrate, but the process was still pending. The bank clarified that once physical possession is secured in accordance with the SARFAESI Act, the sale process would commence.
The bank also revealed that Sunny Deol had indicated that the unit was operational and that the sale process would proceed after physical possession was established.
Another factor leading to the withdrawal of the sale notice was Sunny Deol’s approach to settle the dues after the advertisement was published, following normal industry practice.
The initial advertisement had indicated that borrowers/guarantors could redeem the securities by clearing outstanding dues, expenses, costs, and charges before the sale was executed. Sunny Deol was identified as the borrower/guarantor, with Dharmendra Singh Deol and Sunny Sounds Pvt Ltd as additional guarantors.
The auction notice had originated from the Bank of Baroda’s Zonal Stressed Asset Recovery Branch in Ballard Estate, Mumbai.
The central question revolves around whether a government-owned bank can issue a sale notice for a pledged property that contains several technical flaws.
Considering Sunny Deol’s status as a BJP MP and actor, it was expected that the bank would exercise extra caution in issuing such notices. This leads to the inference that the bank might have a history of releasing similar notices with technical inconsistencies.
AIBEA’s Venkatachalam conveyed that this situation seemed to be politically motivated. He insisted on a thorough investigation to uncover the origins of the initial advertisement, its subsequent withdrawal, and the reasons behind both actions. Venkatachalam emphasized the importance of holding those responsible accountable for their action.
