Solan – Baghat Bank has initiated the process of auctioning properties of loan defaulters, marking a first-of-its-kind step by the bank. In the first phase of the auction, the bank sold four properties for a total of Rs 4.50 crore through an online bidding process held on Friday.
The auction began at 11 am, with properties belonging to 13 loan defaulters put up for sale. However, buyers were found for only four properties, which were sold to the highest bidders.
The highest bid was received for a 1.19-bigha plot located in the Baddi industrial area, which was sold for Rs 2.2 crore. A five-storey building in Jatoli, near Solan city, was auctioned for Rs 72 lakh against an initial bid price of Rs 71 lakh. Two other properties near Heritage Park in Salogra were also sold. A two-bigha plot fetched Rs 32.55 lakh, while a four-bigha plot was sold for Rs 1 crore.
As per the auction terms, bidders had already deposited 10 percent of the bid amount. An additional 15 percent is required to be deposited with the bank within 24 hours, while the remaining 75 percent must be paid within 15 days. The bank will hand over the ownership papers and related documents only after the full payment is made.
The bank is set to re-auction the remaining nine properties, with the next round of the process expected to begin next week.
The auction drive is crucial as the bank’s Non-Performing Assets (NPAs) have risen to around Rs 124–138 crore, while cash flow remains low. The recovery of dues through property auctions is expected to strengthen the bank’s financial position and safeguard the interests of its customers.
