Service Tax Dept to auction Mallya's aircraft next month

After failed attempts, the Service Tax Department is once again attempting to auction “exotic and luxurious” aircraft used by Vijay Mallya to recover dues from the now-defunct Kingfisher Airlines.

The department in Mumbai has invited online global bids for sale of Corporate Jet Airbus A319 stationed at the Mumbai International Airport belonging to Kingfisher Airlines attached by it.

The 25-seater Airbus (A319-133CJ VT-VJM MSN 2650), which bears Mallya’s initials, will go under the hammer during the e-auction scheduled on November 28-29.

The department had scheduled auctions in May, June and August earlier but could not be done due to various reasons. The first auction was deferred after only one bidder showed interest.  In the last instance, the successful bidder was allowed by Bombay High Court to exit the process in September and allowed the Department to re-auction it.

The department through its selling agent MSTC, a mini-ratna company with expertise in auctions, has issued a public notice inviting online global bids.

The aircraft is a corporate jet having a seating capacity for 25 passengers and six crew exclusively designed for exotic and luxurious use. The aircraft has attractive exterior and interior layout and design, an earlier notice had described the airline.

Service Tax Department had impounded Mallya's personal jet, five ATR planes and two helicopters in 2013. Kingfisher had stopped operating since September 2012. Mallya had run into trouble following heightened probe over loan default of around Rs 9,091 crore.

His surprise leaving of the country on March 2 added to the mystery, just before a consortium of banks approached Supreme Court seeking a ban on his foreign travel.