Kingfisher House goes on sale 3rd time, reserve price down 15% | business-news | Hindustan Times
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Kingfisher House goes on sale 3rd time, reserve price down 15%

The 17-lender consortium to the defunct Kingfisher Airlines has again put on sale its erstwhile headquarters, Kingfisher House, but with a 15% reduction in the reserve price.

business Updated: Nov 25, 2016 22:17 IST
PTI
The reserve price has been set at Rs 115 crore for  Kingfisher House, located in the plush Vile Parle in Mumbai.
The reserve price has been set at Rs 115 crore for Kingfisher House, located in the plush Vile Parle in Mumbai.(PTI FIle Photo)

The 17-lender consortium to the defunct Kingfisher Airlines has again put on sale its erstwhile headquarters, Kingfisher House, but with a 15% reduction in the reserve price.

The reserve price has been set at Rs 115 crore for the property located in the plush Vile Parle near the airport here.

“The reserve price has been kept at Rs 115 crore, below which the property will not be sold,” SBICap Trustee, which is auctioning the property on behalf of the lenders, said on Friday.

The auction of the property, which has a built-up area of over 17,000 sq ft, will be held on December 19.

The consortium, led by State Bank of India, has been trying to sell this property to recover dues totalling over Rs 9,000 crore from Vijay Mallya’s defunct airlines. This will be the third time that the property has been put on sale.

In the first attempt in March this year, the reserve price was set at Rs 150 crore. However, the auction failed as bidders found the reserve price “too high”.

Bankers again tried to dispose of the property in August by lowering the reserve price by 10% to Rs 135 crore, but it too did not have any takers.

Mallya, who has been declared by some banks as a wilful defaulter, left the country in March and is currently said to be in the UK.

Kingfisher House is just one of several properties that banks have made repeated attempts to sell, but have been unsuccessful so far.