Banks to auction Kingfisher House, Goa villa at lower prices

Kingfisher Villa will be auctioned on Dec 22 at a reserve price of Rs 81 cr, which is 5% lower than the auction held in Oct

Don't want to miss the best from Business Standard?

A State Bank of India-led consortium of banks will, in the coming week, again auction Kingfisher House in Mumbai and the Kingfisher Villa in Goa, once owned by industrialist Vijay Mallya, at lower reserve prices compared to the three failed previous auctions.

The reserve price for Kingfisher House, once the airline's corporate office, will be auctioned on Monday at Rs 115 crore, which is 15 per cent lower than the failed second auction held in August, when the minimum sale price was fixed at Rs 135 crore.

The Kingfisher Villa in north Goa will be auctioned on December 22 at a reserve price of Rs 81 crore, which is 5 per cent lower than the auction held in October, when the lenders had tried to sell the sea facing property at Rs 85.29 crore.

The liquor baron left the country in March and is currently said to be living in Britain.

Kingfisher Villa, owned by United Breweries Holdings (UBHL), was mortgaged as collateral for loans to Kingfisher Airlines.

Besides these two properties, the banks are also once again auctioning the movable properties worth Rs 15.72 lakh kept at Kingfisher House, on January 5.

These assets include 10 cars, which will be auctioned on an individual basis.

Kingfisher Airlines owes around Rs 9,000 crore to the consortium of 17 banks.

Two attempts this year to e-auction Kingfisher House, the airline's corporate office in Mumbai, ended in failure as no buyer approached SBICap, which is auctioning Mallya's properties on behalf of the lenders.