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Banks take possession of Kingfisher's corporate office

A consortium led by State Bank of India has taken possession of Kingfisher House, the corporate office of now defunct Kingfisher Airlines which owes about Rs 7,000 crore to the lenders.

twitter-logoPTI | August 12, 2013 | Updated 18:32 IST

A consortium of banks has taken possession of Kingfisher House, the corporate office of now defunct Kingfisher Airlines , which owes about Rs 7,000 crore to the lenders.

The property, which was pledged with the banks, is valued at Rs 93 crore, according to estimates.

Since Kingfisher Airlines has also defaulted on its service tax dues, the tax authorities are also a party to the assets of Kingfisher.

A villa of Kingfisher in Goa has also been pledged with the banks, along with personal guarantee of Kingfisher Chairman Vijay Mallya and other guarantees and pledges like the brand Kingfisher.

The consortium of 17 banks, led by SBI, has an outstanding of over Rs 7,000 crore from the carrier.

SBI has the maximum exposure, over Rs 1,800 crore in the Vijay Mallya-led airline. It is followed by PNB with Rs 800 crore, IDBI Bank at Rs 800 crore, Bank of India at Rs 650 crore and Bank of Baroda has Rs 550 crore.

KFA has been grounded since October 1 last year after a labour unrest due to non-payment of salaries which have not been paid since last May.

So far the banks have recovered Rs 550 crore by selling assets of Kingfisher. (With Agency Inputs)

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