Kingfisher House on auction: value at Rs 150 crores

Kingfisher House, the headquarter of Kingfisher Airlines, based in Jogeshwari, Mumbai will be up on auction on Thursday. The auction will be held by the consortium led by State Bank of India (SBI) in a bid to recover Rs 6963 crores debt due from the grounded airline.

The bank consortium has taken over the Kingfisher House near Mumbai Airport belonging to liquor baron Vijay Mallya, in February 2015 after winning a case in session court. Located near the domestic airport at Mumbai’s Andheri(E) area, the property is being put up for e-auction through which interested buyers will bid for it online. The base price for this multi-storey building, with a built up area of over 17,000 square feet, has been set at Rs. 150 crore.

The property is expected to generate interest among corporate houses and retailers, mainly because of its proximity to the highway, though some real estate agents and advisers say the price of the property is on the higher side.

Last month, SBI Capital Markets Ltd (SBICAP), an investment bank unit of SBI, issued a public notice saying the property would be sold through an e-auction under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), 2002. SBICAP Trustee Co. Ltd (SBICTCL), a security trustee of the consortium, will manage the auction.

Kingfisher Airlines aborted flying operations in 2012 as it ran out of cash. Its operating licence was suspended in October 2012 by the Directorate General of Civil Aviation, following a strike by the airline’s employees.