Mumbai: The re-auction of embattled businessman Vijay Mallya’s Goa property, Kingfisher Villa, yet again turned out to be a damp squib today despite a reduction in reserve price by 5 per cent to Rs 81 crore by lenders.
This is the second failed attempt by the 17-lender consortium this week to recover its dues of over Rs 9,000 crore from Mallya by selling his prime assets.
On Monday, the lenders failed to get any buyer for Kingfisher House in the city, when it was put under auction for the third time.
“There was hope that Villa could get some buyer this time, but unfortunately, none of the bidders came forward. The auction failed this time as well,” a source said.
According to experts, one of the reasons for failure of the auction today could be that people are seeing correction in real estate and and they expect lenders to reduce the reserve price further for the villa.
“Post demonetisation, the real estate market has become dull. The property prices have come down. Bidders would not have come forward for buying the villa today as they are hoping that lenders will lower the reserve price for the property,” said one of the analysts.
The government on November 8 announced demonetisation of old Rs 500 and Rs 1,000 notes to root out black money, counterfeit currency and corruption. The move has affected the real estate market where black money is rampant for buying and selling properties.
