BackVijay Mallya’s Kingfisher Villa sold to actor Sachiin Joshi for Rs73 crore
Lenders to Vijay Mallya's Kingfisher Airlines have sell Kingfisher Villa to actor Sachiin Joshi for a reported Rs73.01 crore
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Mumbai: After three failed auctions, banks have finally managed to sell the Kingfisher Villa in Goa belonging to the troubled businessman Vijay Mallya to a city-based actor for Rs73 crore through a private treaty.
The harried lenders to Kingfisher Airlines have ended the jinx to recover the dues of over Rs9,000 crore by monetising assets of the airline under their custody by selling the villa to actor-producer Sachiin Joshi. The sale of KFA Villa finally took off earlier this week after three failed auctions, the last being on 6 March.
With this, the lenders’ only other asset is the Kingfisher House in the city, which had commanded a valuation of over Rs150 crore initially, but could not be auctioned even at the fourth round.
Though both the parties—the 17-bank consortium led by State Bank of India (SBI) and the buyer actor-producer Sachiin Joshi, who owns Viiking Media, refused to confirm the deal, sources said the villa in north Goa has finally been sold to Joshi for Rs73.01 crore, far less than the reserve price the bankers set at upwards of Rs90 crore for auctions, which failed thrice.
“Secured creditors have the right to go for a private treaty if the auction route fails. With this, it seems the jinx over the sale of KFA properties is over. The villa was sold through a bilateral agreement earlier this week for ₹ 73.01 crore to actor-producer Sachiin Joshi," a source who is aware of the development told PTI.
The villa, spread over 12,350 sq. ft or three acres at Candolim (on the way to Fort Aguada), was legally owned by United Breweries Holdings, the parent of the airline. The lenders had taken physical possession of the villa in May 2016. The lenders’ bid to auction trademarks, including the brand value of the Kingfisher logo, in August 2016, too, was unsuccessful.
The reserve price for the brands was set at Rs330 crore, which is not even a tenth of the Rs4,000 crore valuation it commanded when offered as collateral. Asked if a similar route will be followed to dispose of Kingfisher House in the city, which was once the headquarters of the airline, the source said with the sale of the villa, at least a process has been initiated.
The source also said movable assets lying in the villa will be sold through a recovery officer as per the Debt Recovery Tribunal (DRT) orders. For the third auction on 6 March, the reserve price for the villa was set at Rs73 crore, which was around 10% lower than the second auction held last December when the price of the sea-facing property was set at Rs81 crore. It was put under the hammer for the first time last October with a reserve price of Rs85.29 crore.
The villa was used by Mallya to host lavish parties. SBI Caps Trustee was entrusted with auctioning the properties on behalf of the lenders. Mallya was declared a wilful defaulter and is wanted by authorities for default in payment for loans related to Kingfisher Airlines that was grounded in 2012. He owes over Rs9,000 crore to lenders like SBI, Punjab National Bank, IDBI Bank, Bank of Baroda, Allahabad Bank, Federal Bank and Axis Bank, among others. He left the country on 3 March last year and is currently said to be in Britain and his extradition talks are on.
The SBI-led consortium had also reduced the reserve price of the Kingfisher House by 10% to Rs103.50 crore from Rs115 crore during the third failed auction last December. In the first auction in March 2016, the reserve price was set at Rs150 crore, but was lowered to Rs135 crore in the second held last August.
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