Vijay Mallya’s plane auction gets Rs 1.09 cr bid against Rs 152 cr reserve price

  • PTI, Mumbai
  • Updated: Jul 01, 2016 21:35 IST
File photo of businessman Vijay Mallya. An e-auction to sell Mallya’s personal jet proved to be a damp squib as there was only one bid which was less than one percent of the reserve price. (Arijit Sen / HT Photo )

A lone bidder turned up for the auction of beleagured businessman Vijay Mallya’s personal jet with a bid of Rs 1.09 crore- less than one percent of the 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.

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, on Thursday 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 today.

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.

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