E-auction of Vijay Mallya's luxury Airbus A319, has so far attracted only two bidders as per official sources. This is the second time the service tax department has conducted the auction of Mallya's Airbus seized by the agency in December 2013, to recover a part of the tax dues of over £40 million. "Only two bidders have submitted the earnest money deposit as per the norms," an official said.
The department had rejected a single bid of £109,000, made by UAE-based aviation support firm, Alna Aerodistribution, citing it was too low. Sources said the company has once again participated in the bidding process. Mallya's luxury aircraft is owned by CJ Leasing Ltd and was given to Kingfisher on lease. The Bombay High Court observed last year there was no legal trouble in auction of the aircraft which is on financial lease. Proceeds of the sale will be deposited with the high court. The tax authority has seized at least eight aircraft owned by Kingfisher Airlines and Mallya. Last year, Mumbai International Airport Private Limited (MIAL) had auctioned Mallya’s 11-seater jet to a scrap dealer in Mumbai for Rs 2200,000.
On August 4, a consortium of banks led by the State Bank of India were once again unsuccessful in auctioning Kingfisher House in Mumbai as it did not attract a single buyer due to the high reserve price of £13.5 million. The reserve price for the property was lowered by 10 per cent to £13.5 million after the first e- auction of the property in March failed. On April 30, once again auction of brands and trademarks of Kingfisher Airlines turned out to be a damp squib as it failed to attract a single bidder for these pledged assets at a reserve price of £36.67 million. Mallya’s Kingfisher Airlines allegedly owes over £900 million to at least 17 Indian banks. Mallya and his companies have come under the scanner of multiple investigating agencies in the country and the Supreme Court over loan default.
