SBICAP to auction 8 cars of Vijay Mallya 

23 Jul, 2016 15:27 IST|Sakshi
Vijay Mallya owes Rs 6,963 crore to several banks including Rs 1,600-cr loan from SBI. 

Mumbai: After failing to sell off Kingfisher House, SBICAP Trustee Company Ltd, the merchant banking arm of State Bank of India (SBI), has decided to auction eight cars that belong to debt-ridden liquor baron Vijay Mallya, who owes Rs 6,963 crore to several banks. SBI is owed the highest amount of Rs 1,600 crore. The auction is scheduled to be held on August 25 for cars and it’s estimated to fetch the bank Rs13.70 lakh.

To participate in the bidding of the cars, which are currently parked at Kingfisher 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 auction is August 23 and registration charges are Rs 2,000.

SBICAP Trustee Company Ltd had earlier tried to dispose the Kingfisher House by reducing its price from Rs 150 crore to Rs 135 crore, but still found no takers. 

The cars will be available for inspection on July 29 and August 5. The auction is going to be conducted by SBICAP Trustee Company Ltd in association with Income Tax, and Service Tax department. The trustee company has, before this, tried selling the Kingfisher House by reducing its price from Rs 150 crore to Rs 135 crore, but still found no takers.

The cars will be available for inspection on July 29 and August 5. The auction is going to be conducted by SBICAP Trustee Company Ltd in association with Income Tax, and Service Tax department. It’s estimated to fetch the bank Rs13.70 lakh.

All the banks have classified Mallya’s loans as non-performing assets (NPAs). The other banks are Punjab National Bank and IDBI Bank, which are owed around 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 has to recover another Rs 310 crore.

Mallya-owned company has borrowed money from other banks including State Bank of Mysore, Indian Overseas Bank, Federal Bank, Punjab & Sind Bank and Axis Bank.


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