Lenders begin valuation of Kingfisher Villa in Goa

Lenders to the defunct Kingfisher Airlines have begun the process of valuation of Kingfisher Villa in Goa of which they had taken physical possession last month after a long legal battle (See: Banks seek cops' aid to get hold of Goa's Kingfisher Villa).

The process of arriving at a commercial value for the villa is likely to be completed in a few days after which the lenders will put it on sale, as a part of the efforts to recover over Rs9,000 crore reportedly owed from the airline.

"Authorised independent valuers are assessing the property. They are likely to complete the exercise in the next few days and will submit the report," a banking source told The Economic Times.

"The reserve price will be based on the report. The decision on the auction date will be taken afterwards," said another banker.

The villa near Condolim beach in north Goa, owned by United Breweries Holdings, was mortgaged by Kingfisher Airlines to a consortium of 17 banks to obtain loans in 2010. At that time it was valued at Rs90 crore.

In March this year, the banks tried to sell the Kingfisher House in Mumbai to recover a part of their dues. The property could not attract any bidders at a high reserve price of Rs150 crore (No takers for Kingfisher House as price 'too high' ).

In April, the lenders attempted to auction brands and trademarks of Kingfisher Airlines but it also turned out to be a failure with the Rs367 crore reserve price (Auction finds no takers for Kingfisher brands, trademarks).

Last month, North Goa collector Neela Mohanan had given an order in favour of the banks to take the physical possession of the villa, on which United Spirits had claimed tenancy rights.

SBI Cap Trustees finally took the possession of the posh property on 12 May.

The villa was once used by the beleaguered Kingfisher Airlines promoter and liquor baron Vijay Mallya to host lavish parties during his 'good times'.

The villa would be the second immovable property which the 17-lender consortium led by State Bank of India will put on sale.

So far, banks have recovered over Rs1,400 crore by selling shares and collaterals and over Rs1,200 crore are blocked in escrow accounts at Debt Recovery Tribunal, Bengaluru, and the Karnataka High Court.

Mallya had told the Supreme Court he was ready to repay up to Rs6,800 crore of the total dues of over Rs9,400 crore.