#Mumbai : attempt to auction a prime property of disgraced liquor baron Vijay Mallya in Mumbai failed to draw a single buyer on Thursday, presumably due to litigation fears and a high reserve price of Rs 150 crore.The e-auction for the 17,000 sq feet Kingfisher House, the headquarters of the grounded airlines at Vile Parle, was done by SBICAPS Trustee, a subsidiary of SBI Caps.
Mallya, once dubbed the “king of good times”, left the country on March 2 amidst calls for his arrest.
“There were no bidders. I think the higher reserve price was the reason for it,” said an official involved with the auction.
SBI sources said the unsuccessful action indicated caution among prospective bidders who preferred to wait-and-watch before showing any interest in the property.
The 17-member consortium will soon hold a review meeting and may discuss the reserve price as well, sources said.
The banks took possession of the property in February 2015 from the defunct airlines.
The consortium has already sold shares of the defunct airlines for Rs 550 crore in 2013.
The businessman’s massive debt has become a symbol of Indian banks’ vast volume of bad loans — meaning in default or close to it — seen as a threat to financial stability in Asia’s third-largest economy.
Union finance minister Arun Jaitley on Thursday said banks will strive to recover “every penny” from Mallya.
The Enforcement Directorate has summoned #VijayMallya to appear before investigators on March 18 in connection with a money-laundering probe, but he has not indicated if he will appear.
The entrepreneur, who has not been charged with any crime, denies absconding and has lashed out at media who accuse him of fleeing the country. ( from agencies)
Leave a Reply