Fugitive Indian businessman Vijay Mallya's Kingfisher House in Mumbai was sold for Rs 52.25 crore to Hyderabad-based realty firm Saturn Realtors, ET reported.
Kingfisher House was the headquarters of the defunct Kingfisher Airlines. It has been sold at almost a third of the reserve price of Rs 135 crore which was set in the first auction attempt held in 2016. The realty firm purchased the property at a fraction of the original asking price, according to The Times of India.
The 65-year-old businessman, meanwhile, remains on bail in the UK on a "confidential" legal matter, believed to be related to an asylum application.
Special PMLA court in Mumbai gives banks permission
In June, a consortium of 11 banks that gave Mallya loans led by State Bank of India (SBI), had approached a special Prevention of Money Laundering Act (PMLA) court seeking restoration of his properties seized by the Enforcement Directorate.
The special PMLA court in Mumbai allowed the restoration of properties worth Rs 5,646. 54 crore to banks.
Noting that banks have suffered losses, the PMLA Court said it was impossible to conclude the exact "quantifiable loss" at this stage.
The court, however, said that the banks' claim of losses of over Rs 6,200 crore was not "imaginary".
Earlier, on May 24, the court had ordered the release of properties worth Rs 4,234.84 crore, while in June it ordered release of properties worth Rs 1,411.70 crore.
According to an official of lead bank SBI, symbolic possession of properties mentioned in the order would be taken by lenders after following due legal process.
Recovery process in banks are guided by Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the official said, adding that auction or sale of those properties would be done as per the guidelines in due course of time.
Bank loans given to defunct Kingfisher Airlines
Mallya, the owner of the now-defunct Kingfisher Airlines, owes more than Rs 9,000 crore to a consortium of banks in principal and interest.
SBI has the highest exposure of Rs 1,600 crore out of the original loan of Rs 6,900 crore to the defunct Kingfisher Airlines.
Other banks that have exposure to the airline include Punjab National Bank (Rs 800 crore) and IDBI Bank (Rs 800 crore), Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore).
The petitioners were State Bank of India (SBI)-led consortium of 13 Indian banks, including Bank of Baroda, Corporation Bank, Federal Bank Ltd, IDBI Bank, Indian Overseas Bank, Jammu & Kashmir Bank, Punjab & Sind Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, United Bank of India and JM Financial Asset Reconstruction Co Pvt Ltd.
King of Good Times on bail in UK
Mallya's extradition was ordered by former Britain Home Secretary Sajid Javid, in February 2019, after a prima facie case of fraud and money laundering was upheld by the UK courts, including on appeals.
The 65-year-old businessman remains on bail after he was ordered to be extradited in December 2018 by Westminster Magistrate's Court in London - a ruling he has repeatedly tried and failed to overturn.
In July, London High Court declared Mallya bankrupt.
The fugitive Indian businessman said that Enforcement Directorate (ED) is attaching his assets worth Rs 14,000 crores against a debt of Rs 6,200 crores.
Mallya has exhausted legal procedures available to him to fight the Indian government's effort to extradite him.
(With inputs from Agencies)
