On May 30, DNA had reported how the bank had announced its fifth attempt to auction the property on May 31. However, sources close to SBI confirmed that the auction got no response for the fifth time consecutively.
The fifth attempt by State Bank of India-led SBICap Trustee Company Ltd to auction the nearly 17,000 square feet Kingfisher House failed on Wednesday. Kingfisher Airline's corporate office in Vile Parle was put on auction at a reserve price of Rs 93.5 crore but not even a single bidder came ahead to buy the property.
On May 30, DNA had reported how the bank had announced its fifth attempt to auction the property on May 31. However, sources close to SBI confirmed that the auction got no response for the fifth time consecutively.
A source, not wishing to be named, said, "After auctioning the Kingfisher Villa in Goa there was hope that people would come ahead to buy this property too but that hasn't happened."
Kingfisher House was owned by Kingfisher Airlines, which was headed by Vijay Mallya. In February 2015, the bank took possession of the property, for non-payment of loans amounting up to Rs 6,963 crore.
The bank has reduced the base price from Rs 159 crore — the original demand in March 2016 — to Rs 93.5 crore. In the last four attempts, the prices were reduced to Rs 135 crore, Rs 115 crore and Rs 103.5 crore.
Arqam Shaikh of Arc Associate, a south Mumbai-based Architecture firm, said, "Whenever any builder is interested in buying a property, they want to know the FSI potential of the plot. In this case, there has been never any disclosure on what the FSI (floor space index) is, which in my opinion is a hurdle for the bank to find a proper taker. The proximity of the property to the airport might not give it a better FSI, but even that isn't known, so builders would be not very forthcoming in buying the property."
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