Vijay Mallya’s Kingfisher Villa to be auctioned by next month

MUMBAI: After multiple failed attempts to sell assets of Kingfisher Airlines (KFA), lenders are likely to auction the long-defunct carrier’s prime property in Goa,

MUMBAI: After multiple failed attempts to sell assets of Kingfisher Airlines (KFA), lenders are likely to auction the long-defunct carrier’s prime property in Goa, Kingfisher Villa, next month at a reserve price of Rs 85 crore.

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The lenders, led by State Bank of India, may issue a public notice for the auction of the airline’s prime asset, owned by embattled businessman Vijay Mallya, in the next few days, sources said.

The property at Condolim was once used by Mallya — who is now abroad and facing a slew of criminal charges for allegedly defaulting on loans — to host lavish parties. “It (Kingfisher Villa) may be auctioned towards the middle of next month with a reserve price of around Rs 85 crore,” a source said.

Lenders were able to take possession of the Villa in May after a long legal battle with United Spirits which had claimed tenancy rights over the property.

The villa, owned by United Breweries Holding (UBHL), was mortgaged by KFA to SBI-led 17-bank consortium to obtain loans in 2010.

Last month, lenders to the airlines and tax authorities had put under hammer various movable and immovable assets of the KFA for a second time, but failed to get any buyers.