Mumbai: After at least four failed attempts since March 2016, the service tax authorities managed to get a buyer for the confiscated luxury jet of the runway businessman Vijay Mallya, with a Florida-based Aviation Management Sales emerging as the highest bidder for Rs34.8 crore (USD 5.05 million) last Friday, a source has said.
The service tax authorities had put the luxury A319 jet, which the liquor baron used to criss-cross the world to solicit business deals, under the hammer to recover their dues to the tune of Rs 800 crore accumulated on account of non-payment of service tax before his erstwhile Kingfisher Airlines went belly up in October 2012.
The transaction was completed last Friday through an e-auction, following a Karnataka High Court order, the source said, adding the jet has been parked at a hangar of the Mumbai airport since its confiscation in 2013.
The deal will go through after the Bombay High Court approval. “Mallya’s private luxury jet has finally found a buyer at an e-auction conducted by the state-run auctioneer MSTC last Friday.
The Florida, US-based firm Aviation Management Sales LLC quoted the highest bid of Rs 34.8 crore and won the bid,” the source told PTI. The department had initially fixed Rs 152 crore as the reserve price at the first auction attempt in March 2016.