Mallya’s plane auction proves damp squib, gets Rs. 1.09 crore bid

MUMBAI: In another failed attempt at recovering money from beleaguered businessman Vijay Mallya through sale of his assets, a lone bidder turned up for the auction of his personal jet with a bid of Rs. 1.09 crore — less a per cent of Rs. 152 crore reserve price.

The department had fixed Rs. 152 crore as the reserve price while the UAE-based aviation support company Alna Aero Distributional Finance Holdings offered only Rs. 1.09 crore, a department official said.

See also  Union Finance Minister announces proposal for bringing out Battery Swapping Policy

The company had deposited the earnest money of Rs. 1 crore as per auction norms. The plane was attached by the Service Tax Department in December 2013, claiming tax dues of over Rs. 800 crore from the Mallya’s Kingfisher Airlines. The e-auction was held through the department’s official auctioneer, MSTC, last evening. “The company has offered a paltry Rs. 1.09 crore against our reserve price of Rs. 152 crore. Since the bid was much less than our reserve price, we rejected the offer,” a Service Tax Department official told PTI. Earlier this year, the lenders’ attempt to sell the Kingfisher House in the city for Rs. 150 crore and the Kingfisher brands for Rs. 367 crore failed, as no bidders turned up. The official said the department may go in for a second round of bidding involving domestic aviation companies alone, or lower the reserve price, depending on what the government chooses to do.–PTI

See also  Toyota Kirloskar Motor Announces the Inauguration of its first Regional Stockyard in Faruknagar in Haryana

Related Posts

About The Author

Contact Us