Mumbai: The Kingfisher Villa in Goa, where businessman Vijay Mallya used to host some of his lavish parties will go under the hammer on 19 October.
SBICAP Trustee Co. Ltd, which will conduct the auction, has set a reserve price of Rs85 crore for the 12,350 sq. m property in Candolim, which bears the businessman’s initials emblazoned at its entrance.
According to the auction notice, the lending consortium to Kingfisher Airlines Ltd had sent a demand notice to take possession of this property in May 2013, but it could take physical possession only in May 2016.
Seventeen banks led by State Bank of India (SBI) are trying to sell the property as part of their efforts to recover dues totaling over Rs9,000 crore from Kingfisher Airlines. Founded by Mallya and once India’s second-biggest airline, Kingfisher Airlines stopped flying in 2012, after it ran out of cash.
Previous attempts at monetizing assets taken over in the Kingfisher Airlines case have not yielded encouraging responses. In August, lenders had attempted to auction Kingfisher House at Vile Parle in Mumbai, which served as the airline’s office when it was functional, for a second time. The reserve price for the property was fixed at Rs135 crore, lower than Rs150 crore fixed in the first attempt in March. However, the consortium of lenders did not manage to find any bidders in both these attempts, as the reserve price was too perceived to be high.
Similarly, the Kingfisher Airlines brand and trademarks, which were put on auction in April with a reserve price of Rs366.7 crore did not find any bidders either.