So Vijay Mallya is still absconding. As the lenders and tax authorities cool their heels for Vijay Mallya to return to India, they have put under hammer various assets and properties to recover over Rs 9,000-crore debt he owes the banks.
The items waiting for the right bidders are plenty, but turns out no wants to buy Mallya's properties. Since the earlier attempt of placing the assets under the hammer failed to attract bidders, officials marked down the reserve price (the price stipulated as the lowest acceptable by the seller) of all the properties, but of no use.
Is the reluctance because of the fact that no one wants to associate with a troubled brand or is it the high reserve price of the properties? Concerns over possible litigation subsequently could also have put off suitors, experts say. Whatever is the case, the 'king' is clearly in deep trouble.
These are his properties which fetched no buyers:
- Kingfisher Villa in Goa
The posh villa in Goa where Vijay Mallya has hosted several glitzy parties in the past, failed to attract a single bidder at an e-auction on Wednesday, marking yet another failed attempt by lenders to recover dues from the embattled businessman.
The auction turned out to be a damp squib, supposedly due to its high reserve price at Rs 85.3 crore, sources said.
- Kingfisher House in Mumbai
Just like the villa, there were absolutely no takers for Kingfisher House, the erstwhile headquarters of Vijay Mallya's ill-fated Kingfisher Airlines in Mumbai.
The office building was auctioned by a firm associated with lender State Bank of India on March 17. However, the lenders failed to get even one bid for the building which it was hoping to get at least Rs 150 crore for.
Perhaps takers found the base price, which was fixed at Rs 150 crores, to be way too high. On August 4, the lenders re-auctioned Kingfisher House, for a lower reserve price of Rs 135 crore, but still no takers.
- Kingfisher Airlines
Just like his houses, auction of brands and trademarks of Kingfisher Airlines turned out to be a failure on April 30 as lenders failed to attract a single bidder for sale of these pledged assets at a reserve price of Rs 366.70 crore.
The items on sale during the e-auction included the Kingfisher logo as also the once-famous tagline ‘Fly the Good Times’. The other trademarks on sale included Flying Models, Funliner, Fly Kingfisher and Flying Bird Device.
After Mallya's departure, entire brand value of the Kingfisher brand has taken a beating and so bidders remained elusive.
- Mallya’s personal jet
On July 1, Mallya's personal jet went up for auction for a second time. The reserve price was set at Rs. 152 crore and an earnest deposit of Rs. 1 crore was mandated to take part in the auction.
But to the authorities' surprise, the jet could only attract one potential buyer, and a single bid of Rs 1.09 crore. Since the bid was much less than the reserve price, the offer was rejected.
(With inputs from PTI)