Kingfisher villa on auction again at a discount as banks find no takers

The banks have set the reserve price of Vijay Mallya’s villa at Rs81 crore this time compared to Rs85.29 crore at the first auction


Lenders had put on block the Kingfisher House in Mumbai on 19 December for the third time after 15% reduction in the reserve price. Photo: AFP
Lenders had put on block the Kingfisher House in Mumbai on 19 December for the third time after 15% reduction in the reserve price. Photo: AFP

Mumbai: Lenders to the defunct Kingfisher Airlines have decided to again put up for auction on 22 December the plush sea-facing Kingfisher Villa at Condolim in north Goa at a marginal discount of 5% to the last reserve price.

The lenders have set the reserve price at Rs81 crore this time compared to Rs85.29 crore at the first auction of the property on 19 October. SBICap Trustee, which is auctioning the property, on Monday said the reserve price for the property has been kept at Rs 81 crore and it would be put on sale on December 22.

The villa was once used by Vijay Mallya to host lavish parties. After failed attempts to attract buyers in the first auction for different movable and immovable properties of the liquor baron Mallya, like Kingfisher House and various trademarks of the airlines, the lenders have reduced the reserve price by 10% each. The luxury jet once owned by Mallya failed to get even one-tenth of the reserve price event at the third auctions last week.

In the first attempt to sell the airline’s erstwhile headquarters Kingfisher House in Mumbai in March this year, the lenders had kept the reserve price at Rs150 core but reduced it by 10% to Rs135 crore in the second auction later in August, which also failed.

For the third time, lenders had put on block the Kingfisher House on 19 December, with a reserve price 15% lower at Rs115 crore from the second auction in August. In the two failed attempts to sell the long-grounded Kingfisher Airline’s brands and trademarks this year, the reserve price was lowered from Rs366.70 crore to Rs330.03 crore. However, it also could not attract any bidders. The lenders are once again auctioning the movable properties—10 cars ranging from Toyota Innova, Honda City, Honda Civic and Toyota Camry, among others, worth Rs15.72 lakh. These cars would be auctioned on an individual basis on 5 January 2017.

Mallya owes over Rs 9,000 crore to lenders like SBI, PNB, IDBI Bank, BoB, Allahabad Bank, Federal Bank and Axis Bank, among others. He had left the country on 3 March this year and is currently said to be in Britain. Last month, the CBI had initiated an extradition request to bring back Mallya from the United Kingdom through a Special Court in Mumbai. The investigative agencies secured a non-bailable warrant against Mallya, following it with an extradition request from a London special court. PTI

More From Livemint