Third attempt to sell Kingfisher House fails despite 15% cut in reserve price | business-news | Hindustan Times
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Third attempt to sell Kingfisher House fails despite 15% cut in reserve price

Lenders attempt to sell the erstwhile headquarters of defunct Kingfisher Airlines, Kingfisher House, in the city failed for the third time on Monday as none of buyers showed interest despite a 15% cut in reserve price.

business Updated: Dec 20, 2016 01:54 IST
In this March 2016 file photo, Kingfisher house is put up for auction, at Ville Parle, in Mumbai.
In this March 2016 file photo, Kingfisher house is put up for auction, at Ville Parle, in Mumbai. (Vidya Subramanian/ Hindustan Times)

Lenders attempt to sell the erstwhile headquarters of defunct Kingfisher Airlines, Kingfisher House, in the city failed for the third time on Monday as none of buyers showed interest despite a 15% cut in reserve price.

The prime property has a built-up area of over 17,000 sqft and is located in the plush Vile Parle area near the domestic terminal.

“None of the bidders came and the auction of Kingfisher House failed this time also,” a source said.

The 17-lender consortium, led by State Bank of India had put on auction the property today with a reserve price of Rs 115 crore, which was 15% less than the second auction of the property held in August and 23% lower than the first auction in March this year.

In the second auction in August, the reserve price for Kingfisher House was kept at Rs 135 crore, 10% lower than the first auction of the asset in March when the reserve price was fixed at Rs 150 crore. Both the auctions failed as bidders found the reserve price too high.

The lenders are also re-auctioning beleaguered businessman Vijay Mallya’s another plush property - Kingfisher Villa - at Condolim in North Goa on December 22.

The villa will be put under the hammer at a reserve price of Rs 81 crore, which is 5% lower than the auction held in October, when the lenders had tried to sell the sea facing property at Rs 85.29 crore.

The villa was once used by Mallya to host lavish parties.

All the properties are being auctioned by SBICap Trustee on behalf of the lenders.

Last month, the Service Tax Department too failed twice to get any bidders for the luxury jet, owned by Mallya, in its possession.

While Mallya owes over Rs 850 crore to the department, the luxury jet was originally valued at over Rs 150 crore.

Mallya owes over Rs 9,000 crore to lenders like SBI, PNB, IDBI Bank, BoB, Allahabad Bank, Federal Bank and Axis Bank, among others.

He had left the country on March 3 this year and is currently said to be in Britain.