Mumbai: SBI to auction another defaulter's property

After a failed bid to sell Kingfisher House, the bank is now e-auctioning another defaulter’s property on April 26

Just two days after State Bank of India's (SBI) attempt to recover some of the loan given to beleaguered businessmen Vijay Mallya by auctioning the Kingfisher House failed miserably, the bank has put up another defaulter's property up for grabs. An auction will be held on April 26.

Menka CHSL where the Puris own two flats. Pic/Datta Kumbhar
Menka CHSL where the Puris own two flats. Pic/Datta Kumbhar

The bank issued a notice of auction yesterday for two housing units in Chembur, belonging to defaulters owing Rs 1,329.96 crore to a consortium of 12 banks — headed by the SBI. The flats belong to Kapil and Kavita Puri, guarantors for Spanco Ltd. Located in Menka CHSL on Ghatla road near Diamond Garden, flat no 602 and 604 — collectively admeasuring 1,215 square feet — will be auctioned at a reserve price of Rs 2.19 crore.

The flats were taken into possession by the consortium on May 22, 2014.

When contacted, SBI officer Nandkishore Deshpande said, "We are auctioning all the properties belonging to loan defaulters. There are other properties that belong to them and those will be auctioned later. Steps are being taken as per the protocol."

Upon inquiring about the Puris, one of the security guards deployed at the Menka CHSL said, "The flats have been locked for nearly eight years now. No one has visited them in these years. Even the maintenance is due." While a mail to Spanco's official id, requesting a comment, went unanswered, calls to the available numbers revealed they were out of service.

ED to Mallya: Appear before April 2
The Enforcement Directorate (ED) has accorded a two-week extension to Vijay Mallya to appear before the agency in connection with a money-laundering case, official sources said. The fresh summons, requiring Mallya’s presence on April 2, follow Mallya’s failure to make a personal appearance before it on Friday, March 18, as per the earlier summons.

On Thursday, Mallya had sought time till April to respond to the ED summons claiming prior commitments abroad.

Denying last week that he was ‘absconding’, the former liquor baron — known as ‘king of good times’ — said he was an ‘international businessman’ currently abroad on a business trip and was expected to return by March-end.

The former chief of the defunct Kingfisher Airlines Ltd is facing charges of default of bank loans amounting to around R9,000 crore to a consortium of Indian banks.

Besides this, the Central Bureau of Investigation and ED are investigating a suspected money-laundering case against him. In his absence, the banks have initiated process to auction off his fixed and movable assets, including the Kingfisher House in Mumbai, several vehicles, furniture and fittings etc, to recover their dues.

While the reserve price for the properties has been set at R2.19 crore, the bid will increase in multiple of R1 lakh only. The property will be opened for inspection on April 12, 2016, between 11.30 am to 4 pm. The date of auction has been set for April 26, 2016, from 12.30 pm to 2.30 pm. Bidders must remember that SBI is holding an e-auction ‘on as is where is basis and as is what is basis’.

The consortium
>> SBI (lead bank)
>> Punjab National Bank 
>> ICICI Bank 
>> State Bank of Mysore 
>> Bank of Baroda 
>> Indian Overseas Bank
>> Kanur Vysya Bank 
>> United Bank of India
>> Central Bank of India
>> State Bank of Hyderabad
>> Laxmi Vilas Bank Ltd
>> Bank of India

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