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
June 4,2020

Bengaluru, Jun 4: The Special Investment Promotion Task Force, constituted by the Karnataka government, held its first meeting in Vidhana Soudha, Bengaluru on Wednesday, June 3.

The first meeting of the task force was held under the chairmanship of Chief Secretary, Karnataka government.

The body is seeking to find ways to attract the disenchanted multi-national corporations (MNCs) which are looking to shift their manufacturing base away from China in the back-drop of the COVID-19 outbreak.

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coastaldigest.com news network
June 13,2020

Shivamogga, Jun 13: Senior BJP leader and Karnataka Minister for Rural Development and Panchayat Raj, K S Eshwarappa on Saturday opined that during the selection of candidates to the legislative council, the party needs to take into consideration those who helped the party in formation of government in the State.

Speaking to media persons on the sideline of a programme here, he said the party high command would give another surprise while issuing tickets during the MLC election.

Mr Eshwrappa said that party high command will take a call on selecting candidates, but priority should be given to the leader who won on Congress and Janata Dal and then jumped to BJP which helped to form govt under the leadership of B S Yediyurappa.

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P  A Hameed Padubidri
June 9,2020

Is it highly impossible to have flights to Mangaluru under Vande Bharat Mission to repatriate the stranded Mangalureans in Saudi Arabia and other Gulf countries? The present mood of the govt seems so are more politics and less actions are seen. 

Amidst covid-19 lockdown, thousands of people from Mangaluru and surrounding areas are stranded in Saudi Arabia and other Gulf countries. They include visitors, job redundants, people who need immediate medical attention, senior citizens, pregnant women, students and people who are eager to visit their ailing family members, especially aged parents back at home. They are all stuck over there seemingly with hopelessness.

It's reported that around Karnataka NRIs (KNRIs) have registered their names under the Mission in the Indian Embassy in Riyadh alone. A majority among them are apparently from coastal districts of Karnataka who are eagerly waiting for the flights to Mangaluru. 

The promises of elected representatives including MLAs, MPs, state and central ministers have remained unfulfilled so far. Now, things are being thrown from politicians to politicians and from politicians to the district authorities and vice versa. It's said that without proper quarantine facility in the district, the repatriation flights can't be approved to Mangaluru. 

Rumours are doing rounds that the hotels in Mangaluru are not ready to facilitate for the KNRIs quarantines; the hoteliers collectively snubbed the instruction of the district authorities. Now, they are, as informed, persuading the hoteliers to allow for the quarantine facility. 

If the hoteliers are stubborn to follow the instructions of the district administration, then why the authorities are not taking action against them under relevant statutory procedure including the revocation/cancellation of their licenses? Are they above the law or govt? For whom the authorities are waiting for? These questions are now being asked by the KNRIs and others. 

Considering this condition, the central ministers and MPs are simply giving evasive answers without any forward thinking. Each one is simply uttering the same dialogue "no quarantine; no flights to Mangaluru". 

A few KNRI businessmen in Saudi Arabia have already chartered flights to transport their stranded employees and others to Mangaluru with the approval of the govt of India. But, the inconsolable thing is that the govt didn't arrange this simple thing that too with the expense of the travellers. 

The people-especially then distressed NRIs still remember late prime minister V P Singh and then external affairs minister I K Gujral for the repatriation of the NRIs during 1990s Gulf war. Everything was free of cost and immediate special flights were arranged to airlift the NRIs in the affected countries. 

Now both Karnataka and India are ruled by the BJP. Then why the non resident Kannadigas, especially those in Saudi Arabia, are direly neglected at this point in time?. Why it's highly impossible for the govts to do this simple job for the KNRIs?  The NRIs are always big assets to the govt. Also, the KNRIs remit billions of rupees to the state in the form of foreign exchange. But, they are now simply ignored. The state govt should immediately look into this dire situation of the Kannadigas in Saudi Arabia and act immediately to schedule special flights to Mangaluru from Saudi Arabia.

Comments

lovely Indian
 - 
Wednesday, 10 Jun 2020

because we have  MP nallinnan and in centre they consider muslim as enemy...we muslim must develop muslim community. today you give food & help kit tommorow they support BJP to harass muslim community..  even the educated ppl also same nowdays...look at UP doctor. if they dont give right to live in our own country then we must take it forcefully with or without blood

 

if they dont give right to live in our own country then we must take it forcefully with or without blood(1260 BAIBER the islamic worrier)

Abdul Muthalib…
 - 
Tuesday, 9 Jun 2020

Really good & timely writing by P A Hameed,

Even if we pay the flights fares, why the flights are not granted to Msngaluru as there are good number of presence of the Kannadiga Non Residents in Saudi Arabia & other gulf countries. Such a simple service can't be done by our Govt of Karnataka & India. It's really a surprise at the inaction of our people's representatives especially coastal regions including central minister. 
If Central & State Ruling by BJP than we can expect only this....

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