No bidders in e-Auction for Vijay Mallya's Kingfisher House

| Thursday, March 17, 2016 - 15:37
First Published |
Vijay Mallya, Kingfisher House, e-auction, Andheri, Mumbai, Diageo

Mumbai: An online auction of one of Vijay Mallya's flagship properties — Kingfisher House — in Mumbai opened and closed on Thursday without any takers. The base price of Rs. 150 crore for the office at Andheri in Mumbai's western suburbs was "too high", sources said. 

The e-auction was carried out by SBI Cap Trustee Co Ltd, which is an arm of SBI Caps, the merchant banking arm of State Bank of India. SBI Cap Trustee Company had taken possession of the 2,401 sq m property in February 2015.

The e-auction was conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002. The move follows the Kingfisher Airline’s failure to pay their dues to banks.

As on January 31, 2014, Kingfisher House owes banks Rs 6,963 crore and all the banks had classified the loans as non-performing. Some of the national banks, including SBI and United Bank of India, have declared Vijay Mallya a ‘wilful defaulter’.

The country’s largest lender, State Bank of India, which leads the lenders’ consortium that has extended loans to the troubled airline, had recently said banks are fighting more than 20 cases in relation to Kingfisher Airlines in various courts, including the debt recovery tribunal. There have been more than 500 hearings so far with 180 adjournments.

Banks recently moved the debt recovery tribunal to halt payment of $75 million by Diageo, which controls United Spirits Ltd, to Mallya. 


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