Vijay Mallya’s Kingfisher House goes unsold for fifth time

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For the fifth time, bankers failed to auction Kingfisher House, the erstwhile headquarters of Vijay Mallya-owned and now defunct Kingfisher Airlines, despite a 38 percent drop in its reserve price since it was first auctioned.

The 17-lender consortium led by State Bank of India had brought down the hold cost of the property by 10 percent to Rs 93.50 crore from Rs 103.50 crore in the past sale held in March. In December, the save cost was set at Rs 115 crore.

Loan specialists had first attempted to sell the property in March 2016 with a save cost of Rs 150 crore and later in August at Rs 135 crore.

“There were so many enquires for the property from purchasers yet none of them stored the offers in today’s sale,” a financier told media.

The financially troubled airline, grounded since 2012, had taken advances worth almost Rs 7,000 crore from banks and financial institutions and now owes Rs 9,000 crore including principal, interest and service tax dues..

Different endeavors to offer Kingfisher House, situated close to the Mumbai air terminal in Vile Parle with a 2,400 square meter zone, have fizzled. The business property has four stories with authorization for development of fifth floor.

Brand strategy expert Harish Bijoor stated , “For the most part, such properties under prosecution are viewed as negative properties and purchasers are suspicious to take it. Likewise, given the land costs and the property that it is, purchasers will utilize strategies to smother its costs and get it at the least conceivable cost.”

In April this year, banks had figured out how to offer Mallya’s luxurious Kingfisher Villa in Goa through a private settlement for Rs 73.01 crore after three fizzled barters.

The sea-facing property arranged at Condolim in north Goa was sold to Sachiin Joshi of Viiking Media and Entertainment, for Rs 73.01. The estate was sold after three fizzled barters.

Mallya, who has been declared a wilful defaulter, fled to the UK in March last year since his passport has been impounded and is wanted by the government and legal agencies.

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