Another round of auction Service Tax Dept for Mallya jet

MUMBAI|| Mallya Jet || ThePoliticalIndia : Unable to get the right price in the recently-held third auction of luxury personal jet of the embattled businessman Vijay Mallya, the Service Tax Department is now planning to go for yet another round in the next couple of months, a senior department official said. #mallya #auction #privatejet #servicetaxdept #sold #ams

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Another round of auction Service Tax Dept for Mallya jet

In its bid to recover around Rs 535 crore dues from Mallya, the Service Tax Department had conducted the e-auction of his personal plane for the third time on Nov 28-29. it’s already conducted 2 such auctions in June and August respectively, however to no avail.

However, the price offered by the only bidder, the US-based firm AMS, was a lot of lower than that of the reserve worth that had been fixed by the department. it had been despite the very fact that the department had down the reserve worth of the plane this point.

“The bid price offered by the single bidder AMS for Mallya’s plane in the auction which was conducted by MSTC on behalf of the department on November 28-29 was at $2.6 million (Rs 18 crore) which was much less than the reserve price at $12.5 million,” a senior official of the department told TPI here today.

Another round of auction Service Tax Dept for Mallya jet
Another round of auction Service Tax Dept for Mallya jet

The e-auction was carried out by MSTC after the department had roped in a professional valuer for revaluation of the aircraft following a recent Bombay High Court order to do so at a reduced reserve price.

The highest bid received by the department at the second auction held in August was a measly Rs 27 crore against the reserve price of Rs 152 crore which was offered by a domestic firm SGI Commex.