Despite Being Put Up For Auction Four Times, There Are No Takers For Vijay Mallya's Personal Jet

For the fourth time, the Service Tax Department has failed to find a buyer for the personal jet of Vijay Mallya. This is despite the fact that it cut the reserve price to $12.5 million from the earlier $22.5 million on the Bombay High Court's direction in a related case.

BCCL

Mallya, who is in the UK, owes around Rs 1,000 crore to the Service Tax Department. He also owes more than Rs 9,000 crore to 17 banks.

Also Read: Vijay Mallya's Kingfisher House Is On Offer At Rs 35 Crore Discount, Yet There Is No Buyer

Of the Service Tax claim, Rs 535 crore is the levy on ticket sales, which his now defunct Kingfisher airline (KFA) did not deposit with the department. The remaining amount is interest and other levies.

dna

The department had invited global bids for selling off Mallya's jet, grounded at the Mumbai airport, for recovery of its dues. The latest bidding was conducted by MSTC on March 15-16, a senior official of the department said, adding it failed despite the reduction of reserve price to $12.5 million. The only bidder who participated was the US-based Aviation Solution LLP which quoted just Rs 17 crore ($2.65 million), the official said.

AFP

Meanwhile, the Karnataka High Court has appointed Registrar of Companies as an official liquidator in the case related to bank loan default by KFA. The court ordered that all the properties of KFA should be taken over by the official liquidator.

Also Read: Vijay Mallya Wants To Negotiate His Rs 9000 Cr Loans, Says He's Ready For A One-Time Settlement

The liquidator has written to the Service Tax Department, asking to hand over all the KFA properties attached by the department. Apart from Mallya's jet, the department has also attached other properties including seven KFA aircraft, spare engine parts of aircraft and Kingfisher House. During the jet's auction in July 2016, a UAE-based aviation support company had offered a paltry Rs 1.09 crore against the Service Tax Department's reserved price of Rs 152 crore for the plane.