The e-auction of Kingfisher Villa in Goa will be held on December 22 by SBICAP Trustee Company for a reserve price of Rs 81 crore. The last attempt
in October had failed owing to lack of interest from prospective buyers.

The last date for submission of bid application documents, EMD amount and KYC documents is set December 20, 5 pm. The bidders were required to submit 10% of the reserve price or Rs 8.1 crore as the EMD amount. The reserve price has been revised by close to 5% from the last auction.

Prospective buyers are allowed to inspect the property tentatively between December 8-9 and between December 15-16.

Kingfisher Villa, owned by United Breweries Holdings (UBHL), was mortgaged as collateral for loans given to Kingfisher Airlines. Kingfisher Airlines,
which has not flown since October 2012, owes around Rs 6,963 crore to a consortium of 17 bankers who have been trying to recover their money partly by selling securities pledged with them. These include real estate and shares in multiple group entities. The auction is part of the recovery
process of dues from the airline’s promoter Vijay Mallya, under Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act (Sarfaesi), 2002.

Earlier in March and August this year, the e-auction of Kingfisher House – Kingfisher Airline’s corporate office in Mumbai – failed as no buyer
approached SBICAP. While the first auction had a reserve price of Rs 150 crore, the second auction had set it at Rs 135 crore. The next auction of
the property is set to be auctioned on December 19.

The case highlights problems faced by public sector banks when recovering money from defaulters; bankers say the legal process is a long and tedious
one adding that promoters often resort to delaying tactics approaching one court after another. At present, regulations require state-owned banks to
set a reserve price and call an auction to dispose of an asset. If the first auction is not successful, a new reserve price must be fixed and a second auction called before a bilateral negotiation can begin.