The auction of the Vijay Mallya’s Kingfisher House in Mumbai has failed for the fifth time despite a 10 percent cut in the reserve price. In a bid to sell the property, the 17-lender consortium led by State Bank of India, reduced the reserve price to Rs 93.50 crore from Rs 103.50 crore. The House, which Mallya used as the headquarters of now defunct Kingfisher Airlines, had a base selling price of Rs 103.50 crore in an auction held in March this year. In another auction organised in December last year, the price of the house was pegged at Rs 115 crore, according to a report by The Indian Express.
A bank official told IE, ”There were a lot of inquiries about Kingfisher House from prospective buyers, but when the auctions are held no one shows up.”
The house has gone under the hammer five times since March last year. The reserve price for the mansion was Rs 150 crore when it went under the hammer for the first time but it fell to Rs 135 crore in the next auction held in August last year. Despite, a 38 percent drop in the price of the House the consortium of lenders is finding it difficult to auction the property located in the upscale Vile Parle area of Mumbai, according to IE.
The lenders ‘ consortium was able to sell Vijay Mallya’s sea-facing property, Kingfisher Villa in Goa through a private treaty in April this year for Rs 73.01 crore. Lenders can sell a property under Sarfaesi Act (The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) through a private agreement if two auctions of the property fail.