Mumbai: After first unsuccessful attempts to auction the personal luxury plane of beleaguered businessman Vijay Mallya last week, the service tax department is likely to conduct the second auction on August 21 with a lower reserve price for bidders. On June 30, the department had rejected the sole bid of Rs 1.09 crore offered by the United Arab Emirates-based aviation support firm Alna Aero Distributional Finance Holdings, against a reserve price of Rs 152 crore.
The jet, which can carry 25 passengers and six crewmembers, is exclusively designed for luxury.
“The department is gearing up to go in for a fresh round of auction of the personal jet of Mallya in its bid to recover dues amounting to over Rs 800 crore with a lower reserve price,” a service tax department official said.
“The Bombay high court has given its nod to go in for a second round of auctions which is likely to be held on August 21,” the source said.
According to the official, the department may consider bringing down its reserve price this time so as to attract more bidders. “The department is considering lowering the reserve price to attract more bidders. But a decision on valuation of the jet will be taken by the joint pricing committee of the department, which may happen within 10 days,” the official said.
According to the department’s statement in the Bombay high court on March 2, Mallya owes Rs 32.68 crore as service tax collected from tickets sold to passengers of Kingfisher Airlines.
07/07/16 Asian Age
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The jet, which can carry 25 passengers and six crewmembers, is exclusively designed for luxury.
“The department is gearing up to go in for a fresh round of auction of the personal jet of Mallya in its bid to recover dues amounting to over Rs 800 crore with a lower reserve price,” a service tax department official said.
“The Bombay high court has given its nod to go in for a second round of auctions which is likely to be held on August 21,” the source said.
According to the official, the department may consider bringing down its reserve price this time so as to attract more bidders. “The department is considering lowering the reserve price to attract more bidders. But a decision on valuation of the jet will be taken by the joint pricing committee of the department, which may happen within 10 days,” the official said.
According to the department’s statement in the Bombay high court on March 2, Mallya owes Rs 32.68 crore as service tax collected from tickets sold to passengers of Kingfisher Airlines.
07/07/16 Asian Age
