Mumbai:

After failing at selling embattled business tycoon's Kingfisher House, the SBICA
P Trustee Company Ltd, the merchant banking arm of State Bank of India, will auc
tion eight cars he and his company once owned.
The auction will be held on August 25 for cars that will fetch the bank Rs. 13.7
0 lakh out of the Rs. 6,963 crore he owes the bank.
To participate in the bidding of the cars, which are currently parked at Kingfis
her House's backyard, the bidders will have to deposit 10 per cent of the price
quoted for every vehicle. The last day for registering a bidding spot at the auc
tion is August 23 and registration charges are Rs. 2,000. The cars will be avail
able for inspection on July 29 and August 5.
As of January 31, 2014, Vijay Mallya s Kingfisher Airlines owed banks a staggering
Rs. 6,963 crore.
The auction is going to be conducted by SBICAP Trustee Company Ltd in associatio
n with Income Tax, and Service Tax department. The trustee company has, before t
his, tried selling the Kingfisher House by reducing its price from Rs. 150 crore
to Rs. 135 crore, but still found no takers.
As of January 31, 2014, Vijay Mallya's Kingfisher Airlines owed banks a staggeri
ng Rs. 6,963 crore. All the banks have classified the loans as non-performing as
sets. Several reports claim that SBI is owed the highest amount of Rs. 1,600 cro
re. The other banks are Punjab National Bank and IDBI Bank, which are owed aroun
d R800 crore each. The loan amount from Bank of India is Rs. 650 crore and from
Bank of Baroda, it is Rs. 550 crore. Central Bank of India gave a loan of around
Rs. 410 crore, while UCO Bank has to recover Rs. 320 crore. Corporation Bank ha
s to recover another Rs. 310 crore. Other banks like State Bank of Mysore, India
n Overseas Bank, Federal Bank, Punjab & Sind Bank and Axis Bank also lent money
to the company.