Kingfisher House to be auctioned, again


New Delhi: India’s largest lender, State Bank of India, has one again put Kingfisher House, the corporate headquarters of the defunct Kingfisher Airlines owned by Vijay Mallya on the block with lower reserve price. Kingfisher House up for sale as part of efforts to recover dues in excess of Rs 6,900 crore.
The consortium of lenders led by State Bank of India have cut the reserve price to Rs 135 crore from the earlier Rs 150 crore auction held in March 2016. SBICAPS Trustee Company, coordinating the auction on behalf of lenders, said “the date for electronic auction is August 04, 2016. The last date for submitting bids is August 1, 2016.”

Reserve price of Rs 135 crore for Kingfisher House with a built-up area of 1, 586.24 square metres, translates to rate of Rs 8.5 lakh per square meters. The banks also have possession of Mr. Mallya’s popular Kingfisher Villa in Goa, which will also be put on the block soon. An attempt to sell off the Kingfisher brand, taglines, other trademarks, and his private jet, have all failed to find any takers so far.

Interestingly, a lone bidder UAE-based aviation support company Alna Aero Distributional Finance Holdings turned up for the auction of his personal jet with a bid of Rs 1.09 crore against the reserve price of Rs 152 crore reserve price and therefore the bid to be rejected. Kingfisher owns dues in excess of Rs 6,900 crore to the lenders led by SBI.