Couches to jet: Mallya assets to go under hammer for Rs 700 cr

July 31, 2016

Mumbai, Jul 31: As the lenders and tax authorities cool their heels for Vijay Mallya to return to India, they will put under hammer next month assets worth over Rs 700 crore of the embattled businessman's long-defunct Kingfisher Airlines.vijay-mallya-reuters

The items waiting for the right bidders are plenty -- the erstwhile headquarters Kingfisher House near airport here; cars and office furniture; Mallya's plush personal jet along with everything inside that include cushy couches and even a bathrobe; Kingfisher Villa in Goa famous for parties hosted by Mallya; and numerous brands and trademarks including the famed 'Fly with Good Times'.

This would be the second try by the lenders and tax authorities at auction of these assets as part of their efforts to recover thousands of crores worth outstanding dues, after the earlier attempt for each of these properties proved to be a damp squib.

Mallya's personal jet is being put under hammer by the service tax department, while other properties will be auctioned by the lenders whose dues from long-grounded Kingfisher Airlines have ballooned to over Rs 9,000 crore including penal interest.

For almost all the properties, the reserve price has been marked down after the earlier attempts failed to attract bidders.

The 17-bank consortium, led by the State Bank of India, is re-auctioning Kingfisher House in Mumbai and the airlines' trademarks and brands, including the 'Kingfisher' logo.

On August 4, the lenders will re-auction Kingfisher House, the erstwhile headquarters of the airline, at a lower reserve price of Rs 135 crore. In the initial attempt in March to sell the property with a built-up area of over 17,000 sq ft in plush Vile Parle area near domestic airport here, not a single bidder came forward at the then reserve price of Rs 150 crore.

Banks have also put up some of the movable secured assets worth Rs 13.70 lakh lying at Kingfisher House for sale. These assets will be auctioned separately on August 25 by SBI Cap Trustee, which possesses these assets on behalf of the lenders.

The items on sale would include eight cars -- Toyota Innova, Honda City, Honda Civic and Toyota Corolla, among others. The reserve price of each car has been set differently in the range of Rs 90,000-2.50 lakh.

These items will be sold on individual basis and not below the reserve price, according to a public notice put up by SBI Cap Trustee.

In another second attempt, banks will auction brands and trademarks of Kingfisher Airlines including the Kingfisher logo as also the once-famous tagline 'Fly the Good Times' on August 25.

The other trademarks on sale included Flying Models, Funliner, Fly Kingfisher and Flying Bird Device. The reserve price for auction of brands and trademarks has also been reduced to Rs 330.03 crore from Rs 366.70 crore earlier.

In the heydays of Mallya-led group, the Kingfisher brand itself was valued at over Rs 4,000 crore by Grant Thornton when the airline was at its peak.

In its annual report for 2012-13, KFA said that at it peak, it was the largest airline in the country with a five-star rating from Skytrax. The airline's brand had been registered separately from the Kingfisher beer trademarks.

Banks will also soon auction Kingfisher Villa situated at Condolim, in north Goa, which they took possession from the group in May this year after a long legal battle.

The date for the auction of Kingfisher Villa has not been announced so far, but it can also happen in August itself.

According to sources, valuation process by the banks is underway for the Villa, which has come out to be around Rs 90 crore.

Meanwhile, the service tax department will again auction the luxury personal jet of Mallya on August 18.

In the earlier auction on June 30, the department had rejected the sole bid of Rs 1.09 crore offered by the United Arab Emirates-based aviation support firm Alna Aero Distributional Finance Holdings, against a reserve price of Rs 152 crore.

The new pricing has not been announced yet by the Department but sources say it would also be lowered.

Comments

suleman beary
 - 
Sunday, 31 Jul 2016

700 Crores against 9000 Crores....
All these managers assets should be confiscated to recover the balance.

Rikaz
 - 
Sunday, 31 Jul 2016

Kingfisher did not print calendar in 2016....

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News Network
February 9,2020

Bengaluru, Feb 9: Senior JD(S) leader and former prime minister H D Deve Gowda has called upon all the regional parties and secular parties to join hands with the Congress and work in tandem to take on the BJP.

Noting that mere speeches would not help, he said the regional and secular parties should enhance their strength politically in the country.

"We all need to join together with Congress and work in tandem with the available strength only then will we be able to stop them (the BJP)," the JD(S) supremo said at a public meeting organised by the party in Hassan district on Saturday.

Gowda cautioned the regional and secular parties against sitting idle watching the developments in the country.

"If the small and regional parties do not exercise the powers given by Dr B R Ambedkar to the country, they (BJP) are going to the extent of finishing them up," he said. Interestingly, the JD(S) patriarch, had in the run-up to the December bypolls to Karnataka assembly said he would not align with the Congress and dubbed it as "not trustworthy."

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June 27,2020

Mangaluru, June 27: The district health authorities are likely to conduct mass random testing for Covid-19 in Ullal town on the outskirts of the city in the wake of detection of several new coronavirus positive cases there in past couple few days.  

An elderly woman from Azad Nagar in Ullal was died of coronavirus earlier this week. Many others including a couple of policemen also tested positive for the deadly virus in vicinity.

Following this, local elected representatives including MLA U T Khader and religious leaders of Ullal held a meeting regarding taking steps to control the spread of the virus. In the meeting Mr Khader suggested the authorities to conduct random testing in Ullal town. 

Apart from Azad Nagar, covid-19 cases have surfaced in Kodi, Bangera Lane and in the surroundings of police station and Sahara Hospital triggering panic among people. Hence, the authorities are like to conduct random testing of auto rickshaw drivers, fishermen, street vendors among others. 

Meanwhile, several mosques in Ullal have reportedly decided to suspend congregational prayers temporarily.

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News Network
May 12,2020

Bengaluru, May 12: Former chief minister and senior Congress leader Siddaramaiah on Tuesday said that the Central and Karnataka government have failed in containing the coronavirus spread despite having enough time for preparations.

"Central and state government failed in properly controlling COVID-19. The first coronavirus case was reported in Kerala on January 30. Lockdown was imposed on March 24. Both Centre and state had enough time for preparations," Siddaramaiah said in a press meet here.

He said that the Central government did not stop the airline services on time.

"Karnataka government might have been able to stop COVID-19 properly. However, both the state and central government are playing politics over the issue and blaming Tablighi Jamaat for the spread, which is a political strategy painted by the RSS," Siddaramaiah said.

"Who gave the licence to Tablighi's international convention? Who gave them permission in Delhi? They didn't control it. Central government is directly responsible for the increasing numbers of COVID-19 cases in India," he added.

Siddaramaiah said that the lockdown was imposed without any preparation, which he said caused huge problems for the migrant workers across the country.

"Now, the government is collecting ticket fare and looting migrant workers. They don't have jobs or food, they don't have money, and they earn every day to survive. How will they pay for the tickets? Why the government is not arranging for free trains?" the Congress leader said.

He said that around Rs 35,000 crore have been credited to PM CARES fund, Rs 3,000 crore of which was credited from Karnataka alone. "Why are they not using that money?" he asked.

Siddaramaiah said that the party is demanding for the Centre to arrange for migrant workers to return to their native places across the country free of cost.

"We asked Chief Minister to call an all party meeting. We gave many suggestions, which this government did not consider. We also took a delegation and gave a memorandum about farmers, daily wage workers, road side vendors, barbers, problems faced by the unorganized sector. But this government didn't consider any of it," he said.

Questioning the Central government's suggestion to States to amend their Agricultural Produce Market Committee (APMC) Acts, Siddaramaiah said that the move is against the federal system of the country and claimed that it harms the interests of small scale farmers.

He said that the BJP-led state government has also decided to postpone the Gram panchayat elections in the state and is trying to nominate their party workers for village panchayat elections.

"The Government must continue with the present members of the Gram panchayat. If BJP tries to nominate their party members to village panchayats, we will take to streets to protest despite the lockdown," Siddaramaiah added.

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