Want to own Kingfisher villa?Get ready to shell out Rs 85 crore or more | business-news | Hindustan Times
Today in New Delhi, India
Dec 05, 2016-Monday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Want to own Kingfisher villa?Get ready to shell out Rs 85 crore or more

business Updated: Sep 13, 2016 17:57 IST
Beena Parmar
Beena Parmar
Hindustan Times
Highlight Story

Mumbai: Businessman Vijay Mallya during the Kingfisher Ultra Indian Derby at the race course in Mumbai on Feb. 7, 2016. (Photo: IANS) (IANS)

Vijay Mallya’s Kingfisher Villa in Goa, home to his many flashy parties in the past, will be auctioned by lenders on October 19, to recover part of the dues that the industrialist owes to various banks.

The auction to be conducted online by SBI CAP Trustee, has a floor price of Rs 85 crore for the 12,350 sq meter property, located in Candolim on the way to Fort Aguada, a popular tourist attraction in Goa. The beachside villa boasts of a massive private garden as well as ponds, swimming pools and a dance floor. Inside the main villa, there are three big bedrooms and a huge living room.

SBI Cap, which is representing a consortium of 17-banks, will process the online auction for an hour between 11 am to 12 noon on October 19, said a banker who is part of the consortium.

The property was earlier valued at Rs 90 crore and will be open for inspection between September 26 and 27 and between October 5 and 6, said the banker.

Last December, the villa was used by Mallya to celebrate his 60th birthday, a lavish affair attended by more than 200 guests that featured fireworks display and performances by Spanish pop star Enrique Iglesias and Bollywood singer Sonu Nigam.

The high profile party triggered negative reactions with even former RBI governor making a sarcastic indirect reference on how industrialists facing probes for loan defaults and bankruptcy, should not be throwing lavish parties. “If you flaunt your birthday bashes even while owing the system a lot of money, it does seem to suggest to the public that you don’t care. I think that is the wrong message to send. If you are in trouble, you should be cutting down your expenses,” Rajan had said.

The villa was mortgaged to lenders while raising loans for the now defunct Kingfisher Airlines. In May, banks sought physical possession of the villa under Section 14 of the SARFAESI Act.

The banks recovery process has however not yielded success. Efforts to auction the Kingfisher House - the corporate headquarters - and that of the Kingfisher Airlines brand and logos, have failed as there were no bidders. Mallya is currently in London and his passport has been revoked by India.