In a first concrete action, nationalized banks have decided to auction the costly Kingfisher House, which was the residence of Vijay Mallya, at Andheri in Mumbai. The reserve price for the property has been fixed at Rs 150 crore.
The e-auction will be conducted by SBI Cap Trustee Co Ltd, which is an arm of SBI Caps, which had taken possession of the 2,401 sq m property in February 2015.
As on January 31, 2014, Kingfisher Airlines 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.