Vijay Mallya’s Goa Kingfisher Villa on block for Rs 85 crore by SBI

Vijay Mallya’s fabled Kingfisher Villa in Goa has been put on the block by State Bank of India for Rs 85 crore. The auction of the beachside property will take place on October 19.

The Villa, which is the most publicised of Mallya’s properties, could be attached by banks only in May 2016 – five months after the former liquor baron celebrated his 60th birthday there. This was because United Breweries had stymied attachment proceedings claiming tenancy rights on the bungalow.

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The property, a landmark on Candolim Beach, has an area of 12,350 square meters. The Villa itself comprises of three big bedrooms and a huge living room containing has hand-crafted teakwood furniture has been designed in Goan style by Dean D’Cruz a famous architect from the state.

SBICAP Trustee Company, which has been appointed by the banks to conduct the auction said in its notice that the property will be available for inspection between 26th and 27th September and between 5th and 6th October. The bungalow was attached following a default by Kingfisher Airlines, which owed 17 banks Rs 6,963 crore as on April 2014. Mallya’ had provided a personal guarantee for the Kingfisher Airlines loan along with co-guarantor United Breweries.

The auction comes at a time when the bank’s attempt to sell other Mallya properties had failed. Bank’s have not found any buyers for Kingfisher Airline’s erstwhile headquarters – Kingfisher House near Mumbai Airport although the price was lowered from Rs 150 crore to Rs 135 crore in a second auction. Brokers say that the price is still higher than market rates considering height restrictions due to its proximity to the airport. There were also no takers for the Kingfisher brands, which the banks tried to sell for Rs 366 crore. United Breweries had contested the sale stating that it had rights to the Kinfisher bird logo.

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But even as banks struggle to recover their assets, Mallya’s woes have mounted with the enforcement directorate attaching proprety worth Rs 6,630 crore. Mallya himself has been staying in UK since early March 2016 fearing arrest. Mallya left India after a deal with British liquor giant Diageo on February 25 where he would get $75 million and step down from tbe board of United Spirits even as banks moved courts seeking to restrain him from leaving the country.

Although it has been three years since Kingfisher Airlines defaulted on its loans, concerted action by lenders picked up after former Reserve Bank of India governor strongly criticised the wilful nature of the default. “If you flaunt your birthday bashes even while owing the system a lot of money, it does seem to suggest to the public that you don’t care. I think that is the wrong message to send. If you are in trouble, you should be cutting down your expenses,” said Rajan. Source: ET Realty

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