Vijay Mallya's Kingfisher House up for auction, bidding starts

Zee Media Bureau

New Delhi:The SBI-led bank consortium will auction the Kingfisher House at Jogeshwari in Mumbai on Thursday, in a bid to recover a part of Rs 6,963 crore debt due from the now grounded Kingfisher Airlines.

The house, which served as Kingfisher headquarters, would be sold through e-auction. The e-auction will be done under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

 

It has been valued at Rs 150 crore. The e-auction will be done under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

The Trustee Company has kept reserve price of Rs 150 crore and the bid increment amount is Rs 5 lakh, a public notice said. The earnest money deposit for this auction has been fixed at Rs 15 lakh.

 

As per the notice, the borrower is Kingfisher Airlines and guarantors are United Breweries (Holdings) Ltd and Vijay Mallya.

The SBI-led lenders consortium had taken over the Kingfisher House near city airport in February 2015 worth around Rs 150 crore, after winning the case in the local court.

They have also taken over the Kingfisher Villa in Goa, worth around Rs 90 crore.

 

So far, the lenders have recovered around Rs 1,600 crore from their original exposure of Rs 6,900 crore by selling pledged shares and other monetisable collaterals.

The banks have moved the Debt Recovery Tribunal, Bengaluru and the Karnataka High Court and the company said it is contesting their claims.

Banks are now charging 15.5 percent compounded interest on this principal amount, which have not been serviced since January, 2013.

SBI has the highest exposure of Rs 1,600 crore to the beleaguered Kingfisher Airlines.

Other banks that have exposure to the airline include Punjab National Bank and IDBI Bank (Rs 800 crore each), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).

UCO Bank has to recover Rs 320 crore, Corporation Bank (Rs 310 crore), State Bank of Mysore, (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab & Sind Bank (Rs 60 crore) and Axis Bank (Rs 50 crore).