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Lenders to auction Kingfisher Villa tomorrow, bidding starts at Rs 85 cr

Lenders took possession of the villa in May after a legal battle with United Spirits over tenancy rights.

Press Trust of India  |  Mumbai 

A file photo of liquor baron Vijay Mallya at Parliament
A file photo of liquor baron Vijay Mallya at Parliament

The 17-lender consortium led by State Bank of India will auction the Villa, the sea-facing plush property once-owned by the beleaguered Vijay Mallya in Goa, on Wednesday. The reserve price for the property, which once was used by Mallya to host lavish parties, has been set at Rs 85.29 crore.

Lenders had taken the possession of the villa in May this year after a protracted legal battle with United Spirits over tenancy rights.

The villa was owned by United Breweries Holdings, one of the Mallya group and was mortgaged by the now-grounded Airlines to the consortium of banks to obtain loans in 2010.

Lenders had opened the villa for inspection to interested bidders in two slots--September 26-27 and October 5-6. In the four days during which the property was thrown open, around half-a-dozen entities had visited the palatial villa.

"The response was good. Nearly six to seven parties from the hospitality industry and a media organisation have visited the villa," a source had earlier told PTI.

SBICap Trustees, which is auctioning the property on behalf of the lenders, said the e-auction will include only the immovable part of the villa and not its movable assets.

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 in March and is currently said to be in Britain, having defied several court orders to return to India.

The lenders efforts at selling other KFA properties including a luxe private jet and brand as well the Kingfisher House in Mumbai all met with repeated failure.

First Published: Tue, October 18 2016. 19:10 IST