Mallya's Kingfisher Villa to be auctioned by banks next month at Rs 85 cr reserve price

Mumbai: After multiple failed attempts to sell assets of Kingfisher Airlines (KFA), lenders are likely to auction the long-defunct carrier's prime property in Goa, Kingfisher Villa, next month at a reserve price of Rs 85 crore.

The lenders, led by State Bank of India, may issue a public notice for the auction of the airline's prime asset, owned by embattled businessman Vijay Mallya, in the next few days, sources said.

 Vijay Mallya. Reuters

Vijay Mallya. Reuters

The property at Condolim was once used by Mallya -- who is now abroad and facing a slew of criminal charges for allegedly defaulting on loans -- to host lavish parties.

"It (Kingfisher Villa) may be auctioned towards the middle of next month with a reserve price of around Rs 85 crore," a source said.

Lenders were able to take possession of the Villa in May after a long legal battle with United Spirits which had claimed tenancy rights over the property.

The Villa, owned by United Breweries Holding (UBHL), was mortgaged by KFA to SBI-led 17-bank consortium to obtain loans in 2010.

Last month, lenders to the airlines and tax authorities had put under hammer various movable and immovable assets of the KFA for a second time, but failed to get any buyers.

The assets put on sale included the airline's erstwhile headquarters, Kingfisher House, near Mumbai airport, cars, Mallya's plush personal jet and numerous brands and trademarks, including the famed 'Fly with Good Times'.

Most of these assets were put on auction for a second time and with a lower reserve price.

Lenders had reduced the reserve price of Kingfisher House, which has a built-up area of over 17,000 sq ft and is located in the prime suburb of Vile Parle, to Rs 135 crore from Rs 150 crore.

Similarly, the reserve price of the airline's trademarks, including Kingfisher logo and the tag-line 'Fly the Good Times', for the last month's auction was reduced to Rs 330.33 crore from Rs 366.70 crore.

All auctions turned out to be damp squib as bidders found the reserve prices too high.

Updated Date: Sep 13, 2016 18:35 PM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See