Banks takes over Vijay Mallya’s Kingfisher Villa in Goa valued at Rs. 90 crore

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Former liquor baron Vijay Mallya’s iconic Kingfisher villa in Goa’s Candolim beach village, where he celebrated his 60th birthday in December last year, is taken over by the bankers’ consortium on Friday. The main gate to this property valued at around Rs 90 crore, has been sealed by the legal agency appointed by a consortium of lender banks. Auctioning of the villa would take some time. Read the report here.

[su_expand more_text=”READ MORE” less_text=” ” height=”0″ hide_less=”yes” link_style=”button” link_align=”center”] Delhi-based ARCK Consultants by SBI, one of the lenders to Mallya’s now defunct Kingfisher Airlines, sealed the Kingfisher Villa valued at Rs 90 crore after drawing up an inventory of goods and articles inside the palatial premises.

Read: This is Vijay Mallya’s Kingfisher Villa in Goa and here is your chance to have a look at it from inside

Anil Kohli of ARCK consultants told reporters outside Kingfisher Villa, “The property has been attached completely. All inventories have been done. No one can now have access to the villa without permission. The SBI has taken control. We have proceeded as per court order.”

Kohli also stated that auctioning of the villa would take some time. He said, “That will take time. First, there will be a valuation of the premises. That will be the next step.”

The grand villa is expected to earn the lending banks around Rs 90 crore from sale of the property, once the valuation and auctioning processes are completed. The villa was once famous for its parties, celebrity-studded events, Mallya’s base in Goa and the venue of his many parties.

SBI Caps had sought physical possession of the property under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act in late 2014. But 3 of Mallya’s companies which had objected to the move were United Spirits, Kingfisher Airlines, and United Breweries. Media reports said Mallya put up a “villa manager” as a caretaker to put a stop to the banks’ attempt to take it over.

USL had earlier approached a local court citing provisions in the Portuguese Civil Code to block the auction of the property, but as there was a delay on the part of the collector in allowing the takeover of the property, it made SBI Cap approach the Goa bench of Bombay High Court. The bench then granted three months to the collector to complete the hearing of an application filed by the consortium of banks seeking possession of the villa.

Till now, banks have recovered over Rs 1,240 crore by selling shares and collaterals and over Rs, 1,200 crore is blocked in escrow accounts at Debt Recovery Tribunal, Bengaluru, and the Karnataka High Court. It was also told by Mallya to the Supreme Court last month that he was ready to repay up to Rs 6,800 crore of the total dues of over Rs 9,430 crore but banks have rejected the offer.

Read: Despite accredited bankruptcy, Mallya still has 5700 crore pledge free assets claims report

Last month, the consortium of banks had failed in its attempt to sell Kingfisher Airline’s erstwhile headquarters Kingfisher House in Mumbai, which they had taken over, because of the high reserve price of Rs 150 crore. Their attempts to sell the Kingfisher brands and associated trademarks carrying a reserve price of Rs 367 crore had also got no takers.

The Government asked Britain to deport Mallya, citing the revocation of his passport and a non-bailable warrant against him. Mallya had left the country on March 2 for London.

Source: HT

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