SBI-led banks start takeover of Mallya’s Rs 100 crore property | business | Hindustan Times
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SBI-led banks start takeover of Mallya’s Rs 100 crore property

A consortium of banks led by the State Bank of India, on Tuesday, initiated the process of taking over Kingfisher House, owned by Vijay Mallya-led UB Group, as part of the process to recover loans owed by the troubled liquor-to-airline conglomerate.

business Updated: Feb 24, 2015 23:26 IST
HT Correspondent

A consortium of banks led by the State Bank of India, on Tuesday, initiated the process of taking over Kingfisher House, owned by Vijay Mallya-led UB Group, as part of the process to recover loans owed by the troubled liquor-to-airline conglomerate.

The takeover of the property, located near the domestic airport in Mumbai, is part of the efforts initiated in 2013 to recover the Rs 6,800 crore loan that banks had lent to Kingfisher Airlines.

The Kingfisher House, spread over 17,000 sq feet, is estimated to be worth Rs 100 crore.

Meanwhile, the income-tax department has also laid claims to the property as the UB Group owes the department about Rs 350 crore in tax arrears. SBI officials said they would discuss modalities of the takeover with the I-T department. A UB Group spokesperson said that the Kingfisher House property had been handed over to SBI.

In December 2013, the I-T department had moved a Bangalore court seeking to direct banks to first settle its dues of Rs 350 crore, citing that the property had been attached by the department under the IT Act.

Kingfisher Airlines owes Rs 100 crore in arrears to the service tax department.

In a communication filed with the Bombay Stock Exchange, Kingfisher Airlines said the company handed over possession of the property to SBICAP Trustee on February 24, 2015.