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Mallya's Kingfisher House to go under the hammer again
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SME Times News Bureau | 20 Nov, 2019
The Kingfisher House -- the erstwhile headquarters of the defunct
Kingfisher Airlines Ltd. (KAL) - owned by absconding liquor baron Vijay
Mallya, will be up for auction again. The 8th time in barely three
years.
The Debts Recovery Tribunal (DRT), Bengaluru, has
announced a new auction date of November 27 through an online bidding
process, for the beleaguered property.
From the original reserve
price of Rs 135 crore during the first auction of the property --
valued at around Rs 150 crore in 2016 -- for the 8th auction this time,
the reserve price is fixed at a staggeringly low of just Rs 54 crore, a
sharp drop of 60 per cent.
The building, originally known as
Paradigm, and later as Kingfisher House, includes a basement, an upper
ground floor, a ground floor and an upper floor which are now up for
sale, totally measuring 1,586 sq metres.
It is situated on a plot
measuring around 2,402 sq. metres in a coveted location, bang outside
the Chhatrapati Shivaji Maharaj International Airport (CSMIA).
Experts
say an important factor affecting the property sale is the massive
encroachment -- of around 725 sq. metres -- giving a net saleable area
of just 1,677 sq. metres.
Another consideration weighing the
minds of the potential buyers is limited scope of redevelopment or
exploiting it in future owing to the height restrictions on building
constructions as it falls in the vicinity of the CSMIA, among the
busiest in the country.
However, market players caution that if
the reserve price of such premises are slashed repeatedly in this
manner, it tends to give a bad reputation to the prime property and
buyers would shy away from it in future.
The sale is part of the
efforts to recover Rs 6,203 crore plus interest from June 2013, which
are demanded by a consortium of bankers led by the State Bank of India
and others.
The first of the auctions was ordered by the DRT
Bengaluru in 2016 with a reserve price of Rs 135 crore and the last
(7th) one was held in March 2018 with a reserve price of Rs 75 crore.
The
prospective buyers will have to contend with an additional expenditure
of Rs 1.55 crore of unpaid property taxes, due to the BrihanMumbai
Municipal Corporation (BMC), allegedly unpaid since the past over three
years.
A former Rajya Sabha Member, Mallya -- who sneaked out of
the country around early 2016 -- is currently living in London, United
Kingdom since.
In Dec 2018, a UK court ordered his extradition to
India which he has challenged on grounds that the cases against him are
'politically motivated', though Indian authorities are optimistic he
will be brought back to face the law soon.
Presently, he has
non-bailable arrest warrants in several cases from different courts in
India, including Maharashtra, Karnataka and Andhra Pradesh.
In
April 2016, a Mumbai Special Court had summoned him for hearing in cases
of alleged money-laundering of Rs 4,000 crore, but he never showed up.
The
Enforcement Directorate (ED) stepped into the picture in June 2016 by
attaching some of his assets valued at Rs 1,400 crore, and later another
attachment order on his farmhouse, shares in his companies, flats in
Bengaluru and other assets.
So far, the ED has attached more than
Rs 9,600 crore worth of his Indian assets and has initiated the process
to seize his foreign assets in the United State, United Kingdom and
Europe among a few other countries.
Incidentally, so far the
authorities have succeeded in selling Mallya's reputed 'Kingfisher
Villa' in Candolim Beach, Goa, to a Marathi actor in a negotiated deal
of around Rs 73 crore after multiple auction deals failed.
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