Lenders lower Kingfisher Villa price by 5%; re-auction on Dec 22

After failed attempts to attract buyers in the first auction for different movable and immovable properties of the liquor baron Mallya, like Kingfisher House and various trademarks of the airlines, the lenders have reduced the reserve price by 10 per cent each.

The luxury jet once owned by Mallya failed to get even one-tenth of the reserve price event at the third auctions last week.

In the first attempt to sell the airline's erstwhile headquarters Kingfisher House in the city in March this year, the lenders had kept the reserve price at Rs 150 core but reduced it by 10 per cent to Rs 135 crore in the second auction later in August, which also failed.

For the third time, lenders had put on block the Kingfisher House on December 19, with a reserve price 15 per cent lower at Rs 115 crore from the second auction in August.

In the two failed attempts to sell the long-grounded Kingfisher Airline's brands and trademarks this year, the reserve price was lowered from Rs 366.70 crore to Rs 330.03 crore. However, it also could not attract any bidders.

The lenders are once again auctioning the movable properties --10 cars ranging from Toyota Innova, Honda City, Honda Civic and Toyota Camry, among others, worth Rs 15.72 lakh. These cars would be auctioned on an individual basis on January 5, 2017.

Mallya owes over Rs 9,000 crore to lenders like SBI, PNB, IDBI Bank, BoB, Allahabad Bank, Federal Bank and Axis Bank, among others. He had left the country on March 3 this year and is currently said to be in Britain.

Last month, the CBI had initiated an extradition request to bring back Mallya from the United Kingdom through a Special Court in Mumbai.

The investigative agencies secured a non-bailable warrant against Mallya, following it with an extradition request from a London special court.