1. No takers for Vijay Mallya’s Kingfisher House as auction ends

No takers for Vijay Mallya’s Kingfisher House as auction ends

Auction for Vijay Mallya's Kingfisher House in Mumbai ended on Thursday with lenders failing to get any bids.

By: | Updated: March 17, 2016 4:16 PM
Kingfisher Airlines Kingfisher House Auction: The base price for the property was set at Rs 150 crore and the e-auction opened on Thursday. (Express Photo)

Auction for Vijay Mallya’s Kingfisher House in Mumbai ended on Thursday with lenders failing to get any bids. The base price for the property was set at Rs 150 crore and the e-auction opened on Thursday.

The property, with a built-up area of over 17,000 sq ft in Vile Parle area, is being auctioned by SBICAPS Trustee, a subsidiary of SBI Caps through an e-auction. The auction was conducted on e-auction property platform, AuctionTiger.

“There were no bidders. I think the higher reserve price was the reason for it,” said an official involved with the auction conducted by SBI Caps for a consortium of banks led by public sector lender State Bank of India.

The auction is being conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), 2002.

The property was taken over in February 2015 by a consortium of 17 banks lead by State Bank of India in a bid to recover Rs 9,000 crore loan given to the airlines.

Burdened under huge losses and liabilities, including to the lenders, the airline was grounded in late 2012.

While lenders have stepped up their efforts to recover dues totalling over Rs 9,000 crore, the founder and main promoter Mallya left the country earlier this month.

Recently, the Enforcement Directorate registered a money laundering case against Mallya and others based on a CBI FIR registered last year.

The agency is also investigating the overall financial structure of Kingfisher Airlines and will look into any payment of kickbacks.

Kingfisher Airlines faces a probe by the Serious Fraud Investigation Office (SFIO) into its allegedly ‘inflated’ brand valuation of over Rs 4,000 crore.

The government’s white-collar fraud detection agency is probing whether such a high valuation was arrived at fraudulently to get more funds from banks and siphon off the additional money for purposes other than proposed investment in the airline.

Tags: Vijay Mallya
  1. No Comments.

Go to Top