Kingfisher House is to be auctioned on March 17, 2015 to retrieve part of Rs 6,963 Cr loans due from the non-operational airline. Creditors have set a reserve price of Rs 150 Cr. The 2,401-square-metre property was taken under possession by SBICAP Trustee Company in February 2015.
The e-auction will be held under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act 2002.
KFA defaulted on its loans in 2012. 11 lenders have been trying to recover their dues since then. In spite of the large exposure, banks do not have much enforceable security. The other assets include the Kingfisher brand and Kingfisher Villa in Goa. Mallya has provided a personal guarantee of Rs 248 Cr, and UB Holdings has issued a corporate guarantee of Rs 1,601 crore.
Read more: Times of India
