Lenders cut reserve price of Kingfisher House to Rs 135 cr

Last week, the Service Tax Department which had attached Mallya’s personal jet in December 2013 for want of tax dues of over Rs 800 crore, had tried to auction a luxury plane owned by Mallya, which also failed.

By: ENS Economic Bureau | Mumbai | Published:July 5, 2016 2:27 am
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Banks have once again put up Kingfisher House, erstwhile headquarters of the defunct Kingfisher Airlines, for auction with a lower reserve price of Rs 135 crore so as to part-recover their loans. The 17-bank consortium, led by State Bank of India, had in March tried to sell this flagship property here of the liquor baron Vijay Mallya in a bid to recover part of the dues. The auction was a no-show as bidders stayed away citing high reserve price of Rs 150 crore.

“The reserve price is Rs 135 crore below which the property will not be sold,” according to a public notice put up by SBI Caps, which is auctioning the property on behalf of the lenders. The property which has a built-up area of over 17,000 sq ft in the plush Vile Parle area near domestic airport, will be auctioned on August 8. Banks had taken over Kingfisher House in February last year under the Sarfaesi Act. In April, lenders had tried to auction the airlines’ brands and trademarks but it also turned out to be a damp squib as bidders, in that case too, found the reserve price of Rs 366.7 crore very high.

Last week, the Service Tax Department which had attached Mallya’s personal jet in December 2013 for want of tax dues of over Rs 800 crore, had tried to auction a luxury plane owned by Mallya, which also failed.

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