Banks fail to find buyers for Kingfisher House

The move by lenders, led by the State Bank of India, to auction Kingfisher House, Kingfisher Airline’s corporate office in Mumbai, on Thursday failed as buyers kept away apparently due to the high reserve price of Rs 150 crore.

The land along with the building measures around 3,988 square metres. According to reports in the media, the bidders found the reserve price too high, as a result of which no one came forward to participate in the e-auction.

SBICAP Trustee Company, a wholly-owned subsidiary of SBI Capital Markets (SBI Cap), in a public notice last month announced the e-auction of the property, situated near the Chhatrapati Shivaji International Airport.

The auction is part of the recovery process of dues from the airline’s promoter Vijay Mallya, under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), 2002. The public notice said that Mallya owed banks over Rs 6,963 crore.

SBICAP Trustee did not receive the earnest money deposit (EMD) from any interested buyer till Wednesday. The bidders were required to submit 10 per cent of the reserve price or Rs 15 crore as the EMD amount. The reserve price for the property was Rs 150 crore,” said an official.