Kingfisher House and Villa e-auction to be held on March 6; reserve price set at Rs 103.5 cr, Rs 73 cr

By: |
Mumbai | Published: February 17, 2017 3:34:14 PM

The last date for submission of bid application documents, EMD amount and KYC documents has been set as March 4.

The e-auction of Kingfisher House – Kingfisher Airlines' corporate office in Mumbai – along with Kingfisher Villa in Goa will be held on March 6. (PTI)The e-auction of Kingfisher House – Kingfisher Airlines’ corporate office in Mumbai – along with Kingfisher Villa in Goa will be held on March 6. (PTI)

The e-auction of Kingfisher House – Kingfisher Airlines’ corporate office in Mumbai – along with Kingfisher Villa in Goa will be held on March 6, by SBICAP Trustee Company for a reserve price of Rs 103.5 crore and Rs 73 crore respectively. While the last three attempts to sell Kingfisher House had failed in March and August and November last year, two auctions of Kingfisher Villa had failed in October and December last year. The last date for submission of bid application documents, EMD amount and KYC documents has been set as March 4. The bidders are required to submit 10% of the reserve price or Rs 10.35 crore (Kingfisher House) and Rs 7.3 crore (Kingfisher Villa) as the EMD amounts and their reserve prices have been reduced by 31% and 14% respectively from the first auction.

SBICAP Trustee Company, a wholly-owned subsidiary of SBI Capital Markets (SBI Cap), in a public notice announced e-auction of the property. 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. The public notice said that Mallya owed banks over Rs 6,963 crore.

You may also like to watch this video:

Lenders to Kingfisher have not been able to recover their loans and their efforts have met with multiple hurdles. Kingfisher House is among the assets pledged by the company to a consortium of 17 banks. In 2013, the I-T department had moved a Bengaluru court asking lenders to first settle the dues of the department amounting to Rs 350 crore as the property was attached under the I-T Act. The IT department had said that Kingfisher Airlines Limited (KAL) had deducted tax at source from employee’s salary and other payments but did not to remit it to the government account.

Kingfisher Airlines, which has not flown since October 2012, owes close to Rs 7,000 crore to bankers who have been trying to recover their money by selling securities pledged by the firm. These include real estate and shares in multiple group entities.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.