SBI-led lenders set to auction Kingfisher House on March 17

SBI-led lenders set to auction Kingfisher House on March 17
The e-auction will be done under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

SBICAP Trustee Company Ltd, which took possession of the property last year, will do e-auction of the 2,401.70 square meter property on March 17. The Trustee Company has kept reserve price of Rs 150 crore and the bid increment amount is Rs 5 lakh, a public notice said.

The earnest money deposit for this auction has been fixed at Rs 15 lakh. As per the notice, the borrower is Kingfisher Airlines and guarantors are United Breweries (Holdings) Ltd and Vijay Mallya.

It can be recalled that Kingfisher Airlines, started by liquor baron Mallya in May 2005 with much fanfare, went on to become the second largest in its heydays even though it never made a single penny in profit. 

As cashflow issues mounted on the airline, it has remained grounded since October 2012, and the airline lost its flying licence two months later.

The SBI-led lenders consortium had taken over the Kingfisher House near city airport in February 2015 worth around Rs 150 crore, after winning the case in the local court. They have also taken over the Kingfisher Villa in Goa, worth around Rs 90 crore.

So far, the lenders have recovered around Rs 1,600 crore from their original exposure of Rs 6,900 crore by selling pledged shares and other monetisable collaterals. The banks have moved the Debt Recovery Tribunal, Bengaluru and the Karnataka High Court and the company said it is contesting their claims.



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