It was a huge set back to the State Bank of India led bank consortium when their attempt to auction Kingfisher House in Mumbai, failed today.
Some of the reasons for the auction failure cited by experts are valuation, its proximity to airport, low FSI, litigations etc.
The auction was a damp squib maybe because the property is very close to the Mumbai airport and hence the FSI that the buyer would get would relatively low.
According to some property experts the fair valuation for the property should be around Rs 55-60 crore, while the reserve price was Rs 150 crore, which is too stiff.
Moreover, the property is also under various litigations. The new owner would likely have to pay service tax dues etc.
It looks like the lenders will now have to settle in for a lower price.
The SBI-led lenders consortium had taken over the Kingfisher House near city airport in February 2015 worth around Rs 150 crore, after winning the case in the local court.
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