It happens only in India

Auction fails again for Mallya’s Kingfisher House

MUMBAI: Auction of two plush properties of Vijay Mallya’s defunct Kingfisher Airlines — Kingfisher House in this metropolis and Kingfisher Villa in Goa — proved to be a damp squib once again today with not a single bid coming in.

The 17-lender consortium led by State Bank could find no buyers despite reducing the reserve prices for both the properties by nearly 10 per cent to recover loans running into thousands of crores of rupees from the airline that got grounded in 2012 under a huge financial burden, reports PTI.

Kingfisher House, the erstwhile headquarters of the airline, was put under the hammer at a reserve price of Rs 103.5 crore while the same for Villa in Goa was Rs 73 crore.

Mallya himself has been in the UK for almost a year despite summons against him here in India, while a number of banks have initiated recovery proceedings for their unpaid loans and some have even declared him a ‘wilful defaulter’.

In a series of tweets last week, Mallya blamed faulty engines as one of the reasons for the collapse of Kingfisher Airlines. While the auction of Kingfisher House has failed for the fourth time, Kingfisher Villa could not get any bid for the third time.

“Although there were enquiries for both the assets, no bids were received,” said a source familiar with the auction.

The reserve price for Kingfisher House was cut by 10 per cent from Rs 115 crore in the previous auction held last December. Lenders had made the first attempt to sell Kingfisher House in March last year with a reserve price of Rs 150 crore, which was reduced to Rs 135 crore in the second attempt.

LEAVE A REPLY

Please enter your comment!
Please enter your name here