Vijay Mallya’s Kingfisher House sold for Rs 52.25 crore after several failed attempts

The Debt Recovery Tribunal has sold Vijay Mallya’s Kingfisher House in Vile Parle, Mumbai, for 52.25 crore to Hyderabad-based Saturn Realtors in its ninth attempt. Previously, Kingfisher House was the headquarters of Kingfisher Airlines, owned by Mallya, who is standing trial for fraud and money laundering amounting to around Rs 9,000 crore.

Saturn Realtors paid the Maharashtra government 2.612 crore in stamp duty for this transaction. The deal was registered on July 31.

Since 2016, this 2401.70 square metre home outside the Mumbai airport has been on the market. After failing in the previous eight tries, the Bengaluru Debt Recovery Tribunal sold this home for a fraction of the initial reserve price of 135 crore.

The lower prices, according to Pankaj Kapoor, managing director of Liases Foras, a real estate research business, are due to the location and market conditions. ‘There is not much development potential in this plot due to height restrictions as it is close to the airport. In addition, market conditions are bad…,’ Kapoor said.

Following a financial problem, Kingfisher Airlines was forced to shut down on October 20, 2012. Mallya is accused of fraud and money laundering with Kingfisher Airlines and was labelled a fugitive economic offender for defaulting on debts and allegedly defrauding banks.

Mallya escaped to the United Kingdom and has been fighting to avoid extradition to India on several fronts. Since his arrest in April 2019, he has been on bail in the United Kingdom on an extradition warrant.

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In June, a special Prevention of Money Laundering Act (PMLA) court ruled that properties worth 5646.54 crores belonging to Kingfisher Airlines and Vijay Mallya should be restored to the State Bank of India (SBI) and its consortium, allowing its sale to recover part of the 6203 crores owed by Mallya and his now-defunct company.

These included buildings worth 712.94 crore in UB City, Bengaluru, under-construction apartments worth 564.25 crores in Kingfisher Tower, many pledged and unpledged shares and several other assets owned by Dr. Mallya through different businesses in Bengaluru.