Mumbai: The e-auction of the luxury Airbus A319 of Vijay Mallya, chairman of the now-defunct Kingfisher Airlines Ltd by the service tax department has attracted only two bidders according to official sources.
“Only two bidders have submitted the earnest money deposit (EMD) as per the norms,” said a source. This is the second time that 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 Rs 400 crore. Earlier on June 30 the department had rejected the lone bid submitted by UAE-based aviation support firm, Alna Aerodistribution. The company had placed a bid of Rs 1.09 crore for the luxury jet, which, sources said was too low.
According to sources, Alna Aero distribution has once again participated in the bidding process that will end on Thursday night.
The luxury aircraft of Mallya is owned by C J Leasing (Cayman) Ltd and was given on lease to Kingfisher. Last year, the Bombay High Court observed 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.
19/08/16 Khushboo Narayan/Indian Express
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“Only two bidders have submitted the earnest money deposit (EMD) as per the norms,” said a source. This is the second time that 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 Rs 400 crore. Earlier on June 30 the department had rejected the lone bid submitted by UAE-based aviation support firm, Alna Aerodistribution. The company had placed a bid of Rs 1.09 crore for the luxury jet, which, sources said was too low.
According to sources, Alna Aero distribution has once again participated in the bidding process that will end on Thursday night.
The luxury aircraft of Mallya is owned by C J Leasing (Cayman) Ltd and was given on lease to Kingfisher. Last year, the Bombay High Court observed 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.
19/08/16 Khushboo Narayan/Indian Express
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