SBI consortium attaches Kingfisher House

Public-sector lenders on Tuesday took possession of Kingfisher House, the Mumbai office of the grounded airline Kingfisher Airlines (KFA), which defaulted on loans to the tune of Rs 6,800 crore from a State Bank of India-led consortium.

The 17,000 sq ft property near the domestic terminal is valued at Rs 100 crore and was pledged for the loan.

KFA suspended operations in October 2012.

Confirming the development, a State Bank of India official said: "The possession was ordered by a metropolitan court on February 12. The plea for possession was filed by SBI Cap Trustee Company in 2013. In the normal course, the bank will seek a fresh valuation of the property and put it up for auction. However, Kingfisher House has also been attached by income tax and service tax departments for non payment of dues and this issue will have to be sorted out before auctioning it."

The airline in its notification to the BSE said it had handed over the office to SBI Cap Trustee Company following the court order. Along with Kingfisher House, UB Group Chairman Vijay Mallya's Goa villa, too, was pledged with the banks. The collateral also included Mallya's personal guarantee and the airline brand.

Banks sold shares of Mallya-owned United Spirits and Mangalore Chemicals and Fertilizers, given as collateral, and netted Rs 600 crore.

Last year, the banks sought bids from interested parties for the airline's trademark, which, too, was pledged. But there were no serious takers for that.

State Bank of India