Kingfisher Villa sold at last

It’s a deal: After auctions failed, the lenders opted for bilateral negotiations to sell Vijay Mallya’s villa at Candolim.  

The consortium of lenders has finally succeeded in selling absconding tycoon Vijay Mallya’s Kingfisher Villa in Goa through bilateral negotiations after three failed auctions.

The group could opt for this route more often to recover its dues of close to ₹9,000 crore.

The State Bank of India (SBI)-led consortium sold the villa, located in North Goa’s Candolim area, for ₹73.01 crore, as against the reserve price of ₹73 crore set in the last auction. Actor-turned-businessman Sachiin Joshi’s Viiking Media and Entertainment has purchased the high profile property.

Legal sanction

“As per the Sarfaesi (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, if auctions fail a minimum of two times then we can go for bilateral deal which are called private treaties,” said a senior SBI official. Banks that have already classified loans to the defunct Kingfisher Airlines as NPA, are trying to recover close to ₹9,000 crore from its owner.

“Under the private treaty, if anyone approaches, then we can sell that at the minimum of the last reserve price — the price for the last auction,” the official said.

Mr. Mallya’s other immovable property, which has failed to find a buyer even after four auctions, is Kingfisher House in Mumbai.

Asked if anyone has shown interest in the Kingfisher House, the official said, “We will work out something. Private treaty for this can also happen. Last reserve price of Kingfisher House was ₹103 crore. Let us see, if we can get a good deal we can also do a private treaty.”

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Printable version | Mar 6, 2021 8:10:11 AM |

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