Source: News Bharati English17 Mar 2016 11:58:54

Mumbai, March 17: The Kingfisher house in Mumbai will be auctioned by lenders of the Kingfisher Airlines on Thursday. The SBI Cap Trustee Company, which is an arm of SBI Caps, the merchant banking arm of State Bank of India, had taken possession of the Vijay Mallya flagship property located in Vile Parle in February 2015.

The 2,401 Sq metre will be e-auctioned, which will be conducted under the securitization and reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.

The reserve price has been fixed at Rs. 150 crore. At least 15 offers are reportedly in for the auction which will be conducted till 5 pm in the evening. The move is a response to the failure of Airlines Company to pay their dues to the bank. Kingfisher Airlines association (KFA) owes Rs. 6,963 crore to banks.  

All the banks had classified the loans as non-performing. Some banks, including SBI and United Bank of India, have declared Mallya a wilful defaulter. The payment was part of a deal under which the liquor baron would step down as the company’s chairman. Banks also pleaded with the court to not allow Mallya to travel abroad. However, Mallya managed to fly out. Diageo also confirmed that Mallya was paid $40 million, the first instalment of the deal.