[ad_1]
MUMBAI: Sunny Deol, whose latest film “Gadar 2” has set the box office ringing, has got a big jolt from Bank of Baroda (BoB) which has put on auction the Bollywood actor’s real estate in Juhu on which Sunny Villa stands. The 600sqm plot is to be sold through an e-auction on September 25 for recovery of Rs 56 crore.
The bank issued the sale notice as an advertisement where it said that the reserve price for the auction was Rs 51.4 crore. BoB had taken symbolic possession of the property, which it said would be available for inspection on September 14. BoB did not respond to TOI’s request for comment on Sunday. A representative for the Deols said they were in process of resolving the issue and were confident that it would be resolved soon.
The notice, which was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, names Ajay Singh Dharmendra Deol, alias Sunny Deol, as the borrower guarantor, and Vijay Singh Dharmendra Deol, alias Bobby Deol, and Dharmendra Singh Deol as the guarantors. Sunny Sounds Private Ltd, a company floated by Sunny, which owns the dubbing and recording studio, has been named as a corporate guarantor. The property also houses a preview theatre and post-production facilities.
According to banking sources, the Deols had taken a film-financing loan in 2015-16, during the production of “Ghayal Once Again”, which was a sequel to Sunny’s 90s hit movie. The movie was produced under the banner of Vijayta Films Pvt Ltd of which Sunny and Bobby are directors. The movie is understood to have a budget of Rs 50 crore, but collections fell short.
BoB is understood to have classified its loan as a non-performing asset towards the end of 2022. It is, however, not clear whether the loan referred to by BoB in its notice is the same loan, said banking sources.
It is not unusual for banks to issue notices under the SARFAESI Act, which allows them to possess and sell properties of defaulters. A senior public sector banker said that SARFAESI notices are issued only after the loan is classified as a non-performing asset; in other words, the borrower has not paid for 90 days after the due date.
The notice to Sunny has drawn attention because the actor recently starred in a sequel to his movie “Gadar: Ek Prem Katha”. Given that “Gadar 2” has done well at the box office, bankers said it is likely that the Deols would come forward for a settlement.
While it has been over two decades since film-making was classified as an industry under the IDBI Act, lenders are still wary over lending to film projects because of the completion risks. Most of the financing is undertaken without the completion risk, but they are still exposed to market risks since often the returns are linked to box-office collections.
The bank issued the sale notice as an advertisement where it said that the reserve price for the auction was Rs 51.4 crore. BoB had taken symbolic possession of the property, which it said would be available for inspection on September 14. BoB did not respond to TOI’s request for comment on Sunday. A representative for the Deols said they were in process of resolving the issue and were confident that it would be resolved soon.
The notice, which was issued under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, names Ajay Singh Dharmendra Deol, alias Sunny Deol, as the borrower guarantor, and Vijay Singh Dharmendra Deol, alias Bobby Deol, and Dharmendra Singh Deol as the guarantors. Sunny Sounds Private Ltd, a company floated by Sunny, which owns the dubbing and recording studio, has been named as a corporate guarantor. The property also houses a preview theatre and post-production facilities.
According to banking sources, the Deols had taken a film-financing loan in 2015-16, during the production of “Ghayal Once Again”, which was a sequel to Sunny’s 90s hit movie. The movie was produced under the banner of Vijayta Films Pvt Ltd of which Sunny and Bobby are directors. The movie is understood to have a budget of Rs 50 crore, but collections fell short.
BoB is understood to have classified its loan as a non-performing asset towards the end of 2022. It is, however, not clear whether the loan referred to by BoB in its notice is the same loan, said banking sources.
It is not unusual for banks to issue notices under the SARFAESI Act, which allows them to possess and sell properties of defaulters. A senior public sector banker said that SARFAESI notices are issued only after the loan is classified as a non-performing asset; in other words, the borrower has not paid for 90 days after the due date.
The notice to Sunny has drawn attention because the actor recently starred in a sequel to his movie “Gadar: Ek Prem Katha”. Given that “Gadar 2” has done well at the box office, bankers said it is likely that the Deols would come forward for a settlement.
While it has been over two decades since film-making was classified as an industry under the IDBI Act, lenders are still wary over lending to film projects because of the completion risks. Most of the financing is undertaken without the completion risk, but they are still exposed to market risks since often the returns are linked to box-office collections.
[ad_2]
Source link
More Stories
We can’t wait to face India in the final: Pat Cummins | Cricket News
Railways plans 3,000 additional trains in next 4-5 years to minimise number of waitlisted tickets | India News
Faridabad: Man dies after ‘falling from hotel room window’ while partying with friends