Kingfisher House auction bid fails, None show interest


Mumbai: The e-auction of Kingfisher House, Kingfisher Airline’s corporate office in Mumbai, on August 4 is likely to be a damp squib for a second time as once again no buyer is understood to have approached SBICAP Trustee Company.

“Bidders typically do not come due to a higher base price on the property. This is what had happened last time as well,” the first of the two people confirmed.

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The electronic auction was conducted by SBICAP Trustee Co. Ltd at a base price of Rs.135 crore, less than Rs.150 crore set in the previous unsuccessful attempt on 17 March. Kingfisher House also comes with an outstanding property tax of Rs.67 lakh.

Kingfisher Airlines, founded by liquor baron Vijay Mallya and once India’s second-biggest airline, stopped flying in 2012 after it ran out of cash.

In November, lenders called for interest in movable assets—primarily vehicles and assets related to airline businesses—from prospective buyers. They also moved to auction immovable properties such as Kingfisher House, a multi-storey building in Mumbai’s Vile Parle area with a built-up area of over 17,000 sq. ft.

Lack of bidders for stressed assets pointed to a broader problem for the Indian banking system which is in the middle of a major clean-up drive.

Reserve Bank of India governor Raghuram Rajan had said in December that he wanted banks to clean their books of all stress by March 2017.