Vijay Mallya's Kingfisher House auction cancelled, no buyers found

First it was a blow then it was a kick for liquor baron Vijay Mallya's Kingfisher House on Thursday after no buyers were found for the office then went up for auction in Mumbai.

In another blow to Vijay Mallya's dream, lenders today auctioned one of liquor baron’s flagship properties, Kingfisher House, in Mumbai. State Bank of India's banking arm, SBI Cap Trustee Co Ltd, conducted the e-auction of the 2,401 sq m property that it had taken possession of in February 2015.

The e-auction was conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.

The reserve price for the property at Andheri has been fixed at Rs 150 crore.

This comes in wake of Kingfisher airline’s failure to pay banks their dues. As on January 31, 2014, KFA owes banks Rs 6,963 crore.

All the banks had classified the loans as non-performing. Some banks, including SBI and United Bank of India, have declared Mr Mallya a wilful defaulter.

The government's white-collar fraud detection agency is probing whether such a high valuation was arrived at fraudulently to get more funds from banks and siphon off the additional money for purposes other than proposed investmentin the airline.