Kingfisher Airlines' lenders and tax department are all set to auction assets and properties belonging to Mallya, some for the second time, to raise a part of the Rs 9,000 crore he owes the banks.
Vijay Mallya may be avoiding coming back to India and even making a personal appearance in the courts where he has been summoned but in the meantime, banks are putting his properties and movable assets under the hammer to recover over Rs 700 crore.
Mallya owes the consortium of 17 lenders of the long-grounded Kingfisher Airlines, over Rs 9,000 crore including interest accrued and penalties.
Here are all the items that will be going on the block:
1) Kingfisher House: The erstwhile headquarters near the domestic airport in Mumbai is on the block for sometime now. The first auction held in March failed to attract any bidders. Experts believe that the asking price was too high at Rs 153 crore. It has been brought down to Rs 135 crore. The house has a built-up area of over 17,000 sq ft. It will be auctioned again on August 4.
2) Kingfisher Jet: Mallya's plush personal jet along with everything inside that includes cushy couches and even a bathrobe will be auctioned again. The jet, claimed by the Service Tax Department also failed to get any attractive bidders in the first attempt held on June 30. It will be auctioned again on August 18. In the first round, the tax department only got a Rs 1.09 crore bid from United Arab Emirates-based Aviation support firm Alna Aero Distributional Finance Holdings, against a reserve price of Rs 152 crore. It was rejected. The new pricing has not been announced yet but sources say it would also be lowered.
3) Kingfisher Airlines' assets: Banks will be selling atleast eight cars belonging to Kingfisher Airlines and office furniture. The cars include a Toyota innova, Corolla, two Honda Citys, a Honda Civic, and others. The reserve price of each car is set differently and ranges from Rs 90,000 to Rs 2.50 lakh. These items will be sold on individual basis and not below the reserve price, according to a public notice put up by SBI Cap Trustee.
4) Kingfisher House movable assets: The banks will be selling some movable secured assets lying in the Kingfisher House. This has been valued at Rs 13.70 lakh. These assets will be auctioned separately on August 25 by SBI Cap Trustee, which possesses these assets on behalf of the lenders.
5) Kingfisher brand and trademarks: Numerous brands and trademarks including the famed 'Fly with Good Times' will be on the block along with the airlines' trademarks and brands, including the 'Kingfisher' logo. In another second attempt, banks will auction brands and trademarks on August 25. The other trademarks include Flying Models, Funliner, Fly Kingfisher and Flying Bird Device. The reserve price for auction of brands and trademarks has also been reduced to Rs 330.03 crore from Rs 366.70 crore earlier.
In the heydays of Mallya-led group, the Kingfisher brand itself was valued at over Rs 4,000 crore by Grant Thornton when the airline was at its peak.
6) Kingfisher Villa: Banks will also soon auction Kingfisher Villa situated at Candolim, in north Goa, which they took possession from the group in May this year after a long legal battle. The date for the auction of Kingfisher Villa has not been announced so far, but it can also happen in August itself. According to sources, valuation process by the banks is underway for the Villa, which has come out to be around Rs 90 crore.
(With inputs from PTI)
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