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Mallya's lavish corporate jet, Airbus 319 aircraft has no takers, now put on auction for the third time

According to airlines sources, the Mallya's lavish corporate jet aircraft is worth over 550 crore but the government has been able to get a little over 100 crore through previous global auction.

Published: 30th January 2017 02:24 PM  |   Last Updated: 30th January 2017 08:40 PM   |  A+A-

File Photo of debt-ridden liquor baron Vijay Mallya. | PTI

Express News Service

NEW DELHI: After two unsuccessful attempts to auction debt-ridden liquor baron Vijay Mallya’s personal aircraft Airbus A319-133 CJ, the service tax department on Monday issued online bids for the sale of the corporate jet yet again to recover dues of Rs 800 crore from defunct Kingfisher Airlines. Ganesh Yadav, a senior official with the state-run MSTC Limited, which is conducting the e-auction for the sale of the aircraft said they have not been able to get potential buyers and so they have put the aircraft up for re-auction for the third time.

“The global online e-auction for the aircraft will be held on March 15 and 16. We will conclude it only if we get a good deal,” the official explained, adding that they are yet to take a call on auctioning off five ATR aircraft and two helicopters of KFA that were also confiscated by the service tax department in December 2013. According to airlines sources, Mallya's lavish corporate jet aircraft is worth over Rs 550 crore but the government has been able to get a little over Rs 100 crore through previous global auction. "Clearly nobody wants to ride on a horse, whose owner has not serviced and taken care of it well over the years," said an industry official.

Other than Mallya’s jet, five ATR aircraft and two helicopters of the defunct Kingfisher Airlines have been confiscated by the department in December 2013. These planes are currently at Mumbai International Airport. The department, which seized the Airbus A319 (of the defunct Kingfisher Airlines) in December 2013, had appointed Air India as a technical consultant for the sale of the aircraft. Kingfisher Airlines was grounded in October 2012.

The prospective bidders will have to submit interest-free pre-Bid Earnest Money Deposit (EMD or the initial amount to be deposited before participating in the bidding is `one crore. The previous bidding on the same was conducted on November 28-29 by MSTC, the selling agent of the Service Tax Department. The aircraft is owned by C J Leasing (Cayman) Ltd and was given on lease to the now defunct Kingfisher Airlines. In 2013, the Bombay High Court observed there was no legal trouble in an auction of the aircraft which is on the financial lease. Proceeds of the sale will be deposited with the High Court. Additionally, besides auctioning of KFA aircraft, banks too have begun the process of recovery of Rs 9,000 crore from Vijay Mallya.



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