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HomeCity NewsVijay Mallya loan default case: SBI consortium starts auction of Kingfisher House

Vijay Mallya loan default case: SBI consortium starts auction of Kingfisher House

Lenders to the long-grounded Kingfisher Airlines, owned by businessman Vijay Mallya, on Thursday began auctioning its headquarters – Kingfisher House – that’s situated near the domestic airport in Vile Parle.

Vijay Mallya House-AV
The property, with a built-up area of over 17,000 sq ft in Vile Parle, is being auctioned by SBICAPS Trustee, a subsidiary of SBI Caps through an e-auction.

The auction is being conducted on the e-auction property platform, AuctionTiger.

According to the sources, “No one comes forward for the bid, yet.”

“Base price is too high for this office premises,” said the source.

The base price for the property has been set at Rs. 150 crores.

The auction is being conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

The property was taken over in February 2015 by a consortium of 17 banks lead by The State Bank of India in a bid to recover Rs. 9,000 crores in loans given to the airlines.

Burdened with huge losses and liabilities, including to the lenders, the airline was grounded in late 2012.

While lenders have stepped up their efforts to recover the dues totalling over Rs. 9,000 crores, the founder and main promoter Mallya left the country earlier this month.

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