A consortium of lenders on Saturday put Kingfisher House in Mumbai up for auction for a second time. The lenders reduced its base price by Rs 15 crore, to Rs 135 crore, after a first auction in March attracted no bidders. The banks, led by State Bank of India, are attempting to recover dues worth more than Rs 7,000 crore. SBICAPS Trustee Company said the date for electronic auction is August 4, and the last date for submitting bids is August 1.
Former owner of Kingfisher Airlines, Vijay Mallya, owes around Rs 9,000 crore to 17 banks in India. Mallya left the country in March after stepping down as head of United Spirits. He was declared a proclaimed offender in June. According to Indian law, a proclaimed offender is one who is absconding despite an arrest warrant issued against them. The Enforcement Directorate had moved court to have Mallya declared a proclaimed offender as this is a prerequisite for a red corner notice (an international crime alert) to be issued against him. On June 11, the investigating agency attached properties worth Rs 1,411 crore belonging to Mallya and his company United Breweries.
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