Mallya to lose Kingfisher House

Last Updated: Mon, Jul 21, 2014 18:37 hrs

The troubles for Vijay Mallya's Kingfisher Airlines continue. The airline, which was grounded in October 2012 and lost its flying licence, is now likely to lose its office in Mumbai - 'Kingfisher House'.

The State Bank of India, along with other lenders are likely to take possession of the prime property in Andheri, after the airline withdrew an appeal in the Supreme Court. Kingfisher Airlines had earlier filed the appeal to restrain 17 lenders, including SBI, from taking possession of the property.

The lenders had sought control of the property to sell it and recover the airline's dues of up to Rs 8000 crore.

The prime property, which was valued at an estimated Rs 93 crore had been mortgaged to banks, in addition to a villa in Goa.

In February, last year, banks decided to sell a portion of the airline's collateral with them to recover the dues. Besides Kingfisher House, the airline had also pledged shares of group companies, such as United Spirits Ltd and Mangalore Chemicals & Fertilizers Ltd.

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