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
April 7,2020

Bengaluru, Apr 7: The Karnataka Government indicated today that it is too early to take a call now on lifting the nation-wide lockdown but said it’s in favour of its extension in COVID-19 hotspots in the country by at least an additional two weeks.

“We need to see for another few days before taking final call,” Medical Education Minister Sudhakar K, who is in-charge of all matters related to COVID-19, told news agency Press Trust of India when asked if the State is in favour of the rollback after the 21-day period ends on April 14.

The minister opined that the decision on its withdrawal should be based on the COVID-19 pandemic situation at the time in terms of number of cases and response to the outbreak.

When the lockdown is lifted, it has to be in a staggered and phased manner, and not at one go, Mr Sudhakar stressed.

“Where there are red alerts and zones, those zones, in my opinion, should continue to be in a lockdown situation at least for two weeks…till this month-end, I will request them (the Centre) to do this,” he said.

The Telananga Chief Minister K Chandrasekhar Rao on Monday appealed to the Prime Minister Narendra Modi to extend the 21-day national lockdown imposed to contain COVID-19 outbreak beyond April 14, saying it was essential to save lives.

Mr Sudhakar said the Karnataka government is facing financial challenges because of drastic fall in revenues due to the lockdown, adding, it would take “tough decisions” to cut expenditure.

The Finance Department is in the process of evaluating the state’s fiscal position.

“Finance department is gathering information…what is the need now, what should be the overall expenditure, how much we can save; financial support for unorganised and organised sector, along with stimulus to other sectors, we have to see where we stand financially,” the minister said.

“Based on that, we have to take certain steps for sure because after all the government runs on the exchequer money. Once the exchequer is stopped because of lockdown, we are not getting GST, no motor vehicle tax. No tax money is coming.”

Government also has to run right? he said.

He said commitment and obligations with regard to paying interest on loans taken at the national and international level would have to be met.

“So, there are some financial constraints, and financial challenges before the government. The Government will take tough decisions only after studying the entire finance (position of the State).”

The Telangana government last week announced pay cut for government employees.

The Union Cabinet on Monday approved a 30 per cent cut in salaries of all Members of Parliament and a two-year suspension of the MP Local Area Development (MPLAD) scheme.

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News Network
March 23,2020

Bengaluru, Mar 23: Karnataka government today decided to go for complete lockdown. This includes the closure of all non essential government offices, suspension of all public transport services and banning of mass prayers in places of worships across the state.

Chief Minister BS Yediyurappa had expressed the need for a complete lockdown like the Janta Curfew on Sunday. Going by this, there will be no government transport services at least till March 31 and as many as 19,000 government buses will be off the road.

The government also decided to cancel the famous Karaga festival. The CM said that all celebrations and functions will be called off along with mass prayers in mosques and churches.

The CM said that they have decided to procure 1,000 ventilators and 10 lakh face masks in addition to other health equipments.

Private hospitals have come forward to spare their doctors and nursing staff to attend to Covid-19 patients in government hospitals, the CM said.

Yediyurappa also said that he has directed the health department to paste notification on the houses of residents who are infected with coronavirus. This is being done after people with indelible seals and home quarantined are reported to be roaming freely. The notifications will help neighbours to keep an eye on them.

The CM said the government-run Indira Canteen will serve free food to the poor until the lockdown continues. He also said that action will be initiated against non essential shops that are open despite a directive to shut down.

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News Network
April 8,2020

Bengaluru, Apr 8: Till date 181 COVID-19 positive cases have been confirmed in Karnataka including five deaths and 28 discharges, said State Government on Wednesday.

Six new positive cases have been reported from April 7, 5:00 PM to April 8, 12:00 noon, informed Karnataka Government in a bulletin.

Out of the six fresh cases one has been reported from Uttarakannada, two from Kalburgi, one from Mandya, one from Chikkaballapur and one from BBMP Bengaluru.

"In view of breaking the chain and containment of COVID-19, Karnataka State Board of Auqaf, Bengaluru has directed to all the managements not to allow any congregational prayers in the Masajid and the managements of the Qabrasthans (Muslim graveyards) / Darghas throughout the state and to suspend the visit of public on the occasion of SHAB-EBARAT on thursday, April 9," said State Government in its bulletin.

No public shall be allowed to perform religious rituals in the Qabrasthans/Darghas and all the gates of Qabrasthans/Darghas shall be kept closed.

All managements of Qabrasthans/Darghas shall take necessary action on the above directions and all Waqf officers, District Waqf Advisory Committee in state shall adhere to the orders and directed to circulate the same and to ensure the order is followed scrupulously, the State Government added.

India's tally of positive COVID-19 cases stands at 5,194, said the Ministry of Health and Family Welfare on Wednesday.

Out of the 5194 cases, 4,643 are reported to be active while 401 people have recovered or have been discharged and one has migrated. The death toll stands at 149.

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