Kingfisher house set to be auctioned again

MUMBAI: Vijay Mallya’s Kingfisher House is set to be auctioned again as bankers cut the reserve price by 10% to Rs 135 crore to auction the debt-laden Kingfisher

MUMBAI: Vijay Mallya’s Kingfisher House is set to be auctioned again as bankers cut the reserve price by 10% to Rs 135 crore to auction the debt-laden Kingfisher Airline’s headquarters on August 4.

HT Image

Defunct since three years, Kingfisher Airlines now owes banks dues of Rs 6,963 crore at the end of January 2014, with further interest from February 2014 with expenses and costs, according to the auction notice. As per information given to the SC, the total amount, including the interest and principal loan due, is about Rs 9,000 crore. Apart from the bank dues, the airline also owes Rs 350 crore to the I-T department and Rs 100 crore to the service tax department.

The lenders have put the property on the block as part of their efforts to recover dues from Mallya. The consortium of lenders led by State Bank of India has cut the reserve price to Rs135 crore, 10% lower from the earlier Rs 150 crore auction held in March 2016, which failed to find any bidders.

The date for the new electronic auction is August 4 and the last date of registration or submitting the bids is August 1, said the notice by SB I CAPS Trustee Company that is coordinating the auction.

Previous attempts to auction the Kingfisher logo, brand, taglines, other trademarks, and his private jet, have also failed to find any takers so far.