The Kingfisher villa where businessman Vijay Mallya used to host some of his lavish parties will go under the hammer on 19th October. After multiple failed attempts to sell assets of Kingfisher Airlines, lenders are likely to auction the prime property in Goa, Kingfisher Villa, next month at a reserve price of Rs 85 crore. The lenders led by State Bank of India may issue a public notice for the auction of the airline’s prime asset owned by Vijay Mallya in the next few days.
The property at Candolim was once used by Mallya who is now abroad and facing a slew of criminal charges for allegedly defaulting on loans to host lavish parties. According to the auction notice, the lending consortium to Kingfisher Airlines Ltd had sent a demand notice to take possession of this property in May 2013, but it could take physical possession only in May 2016.
Once India’s second biggest airlines, founded by Mallya, stopped flying in 2012 after it ran out of cash. Seventeen banks led by The State Bank of India are trying to sell the property as part of their efforts to recover dues totaling over Rs 9,000 crore from Kingfisher Airlines.
Last month lenders to the airlines and tax authorities had put under hammer various movable and immovable assets of the Kingfisher Airlines for the second time but failed to get any buyers. Similarly, the Kingfisher Airlines brand and trademarks, which were put on auction in April with a reserve price of Rs366.7 crore did not find any bidders either.
The assets put on sale included the airline’s erstwhile headquarters, Kingfisher house near Mumbai airport, cars, Mallya’s plush personal jet and numerous brands and trademarks, including the famed, “fly with good times”. Most of these assets were put on auction for the second time and at a lower reserve price.
All auctions turned out to be a damp squib as bidders found the reserve prices too high.