Reasons for previous failed attempts
Hyderabad based Saturn Realtors sold businessman Vijay Mallya’s Kingfisher House at Vile Parle in Mumbai for ₹52.25 crores in the ninth attempt by the Debt Recovery Tribuna. The place was once the headquarters of Kingfisher owned by Mr Mallya.
Mr Mallya has been accused of alleged fraud and money laundering which amounts to almost ₹9,000 crores.
The property is spread around 2401.70 square metres outside the Mumbai airport and has been on the market since 2016. At the initial reserve price of 135 crores, the Debt Recovery Tribunal Bengaluru sold this house after failing in the previous eight attempts.
According to a real estate research firm, Liases Foras, Mr Pankaj Kapoor who is a managing director there attributes the reduced rate of the property mostly due to its lack of development and lack of potential in development due to its height restrictions and its closeness to the airport.
Additionally, Mr Kapoor also emphasised the poor market conditions at the market.
Mr Mallya’s plunge down into the financial crisis
On October 20, 2012, Kingfisher Airlines fell into bankruptcy after owner Vijay Mallya was caught in accusations of fraud and money laundering regarding the airlines and has been declared a fugitive economic offender for defaulting on loans and fraud.
Recently, Mr Mallya has been on Bail in the UK since his arrest in April 2019 on an extradition warrant.
A special Prevention of Money Laundering Act (PMLA) directed to incorporate properties worth ₹5646.54 crores that belonged to Kingfisher Airlines and Vijay Mallya to the State Bank of India (SBI) in June and its consortium which in turn enables its sale to recover part of the ₹6203 crores which Mallya and his now-defunct company owe.
Moreover, these seized properties include various properties in UB City, Bengaluru worth ₹712.94 crores, under construction flats in Kingfisher tower worth ₹564.25 crores along with various other companies as well.