Vijay Mallya's Kingfisher House remains unsold again

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26 Aug, 2025 12:21

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Despite the lowering of reserve prices for both the properties — owned by businessman Vijay Mallya and now seized by banks — failed to attract bidders at an online auction.

High reserve prices have been blamed for keeping buyers away from both the properties. However, it is more than just the high reserve prices, according to bankers.

According to a State Bank of India official, “It is not just this asset. Generally, any stressed mortgage asset takes time to get sold in such auctions. Price discovery is difficult and buyers would not want a lower price and with no legal complications...We have been trying to sell many other assets and the market demand is too weak.”

“It (Kingfisher House) is a very good property at an excellent location. However, the economy has not picked up and also the real estate market is not in a good shape. Additionally, in India, the legal complications that haunt you after buying a property could be keeping some buyers away,” the official added.

Mallya, promoter of the grounded Kingfisher Airline, owes Rs 9,000 crore to a consortium of 17 lenders for default of loans and non-payment of service tax dues to service tax department.

Known for his flamboyant lifestyle, Mallya has been facing the wrath of banks and various government agencies for non-repayment of dues. He has fled to London since March last year after his passport was suspended by Indian authorities.

SBICAP Trustee Company, auctioning on behalf of the SBI-led bank consortium, had reduced the reserve price of Kingfisher House, the erstwhile headquarters of the airline, by 10 percent to Rs 103.50 crore as compared to that of Rs 115 crore for the previous auction held last December.

In the first auction of Kingfisher House in March last year, the reserve price was set at Rs 150 crore but was lowered to Rs 135 crore in the second auction held in August as no bidders came forward to buy the property.

The prime real estate property has a built-up area of over 17,000 sq ft and is situated close to the domestic airport and the western express highway in the Mumbai suburb, Vile Parle.

Similarly, the reserve price of Kingfisher Villa, the luxurious property located at Candolim in north Goa was set at Rs 73 crore, also 10 percent down than the second auction held last December.

In the December auction, the price of the sea-facing property was set at Rs 81 crore. It was put under the hammer for the first time last October for a reserve price of Rs 85.29 crore.

SBICAP Trustee has also auctioned other properties including several of Mallya’s cars, some of which were successfully sold.

Last week, Mallya tweeted blaming faulty engines as one of the reasons for the collapse of Kingfisher Airlines.