The auction for Kingfisher House, one of Kingfisher Airlines promoter Vijay Mallya’s flagship properties in Mumbai, ended on Thursday with lenders to the grounded airline failing to get any bids.
The e-auction was conducted by SBI Cap Trustee, which is an arm of SBI Caps, the merchant banking arm of State Bank of India. SBI Cap Trustee Company had taken possession of the 2,401 sq. m property in February 2015. The e-auction was conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.
"There were no bidders. I think the higher reserve price was the reason for it,” said an official involved with the auction conducted by SBI Caps for a consortium of banks led by public sector lender State Bank of India.
The reserve price for the property at Andheri was fixed at Rs. 150 crore.
The lenders' move follows the airline’s failure to pay banks their dues. As on January 31, 2014, KFA owes banks Rs 6,963 crore. All the banks had classified the loans as non-performing. Some banks, including SBI and United Bank of India, have declared Mr Mallya a wilful defaulter.
17/03/16 The Hindu
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The e-auction was conducted by SBI Cap Trustee, which is an arm of SBI Caps, the merchant banking arm of State Bank of India. SBI Cap Trustee Company had taken possession of the 2,401 sq. m property in February 2015. The e-auction was conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.
"There were no bidders. I think the higher reserve price was the reason for it,” said an official involved with the auction conducted by SBI Caps for a consortium of banks led by public sector lender State Bank of India.
The reserve price for the property at Andheri was fixed at Rs. 150 crore.
The lenders' move follows the airline’s failure to pay banks their dues. As on January 31, 2014, KFA owes banks Rs 6,963 crore. All the banks had classified the loans as non-performing. Some banks, including SBI and United Bank of India, have declared Mr Mallya a wilful defaulter.
17/03/16 The Hindu
