Mallya’s jet auctions dilemma continue

A luxurious jet, a defaulter, a government agency, a set of legal barriers--that is the latest in king of 'Good Times,' Vijay Mallya saga. Even as the Service Tax Department after a long search and several attempts managed to secure a buyer through a global competitive bidding for the luxury aircraft owned by Mallya, the Department is far from recovering its dues even through the auction route. 

While a privately held entity, SGI Commex floated a claim that it has qualified as the final buyer for Mallya's jet, gathering dust in Mumbai airport's bay, legal arms of an octopus has spread its tentacles. Though the auction which took place on Aug 18 reportedly found a successful bidder, there is still lack of clarity whether SGI Commex has turn the deal in its kitty. SGI Commex has managed to attract media attention, nevertheless; the company claims to have bought the indebted businessman Vijay Mallya’s personal jet at a price of Rs 27.39 crores. Service Tax Department is responsible for the auction proceedings. This was the second attempt by the Department to sell the jet. The first attempt was carried out on June 30 when a Dubai-based company had offered just Rs.1 crore, which was promptly turned down by the Department as it had set the reserve price of the jet at Rs 152 crores.

The auction of the jet is challenged by Mumbai division of the Airports Authority of India at Mumbai High Court claiming unpaid airport fees which according to AAI should be either paid by the Department or the buyer of the jet which also has a bathing gown of Mallya along with a few dozens of fine-cut crystal glasses to serve alcohol on the rocks. On the other hand, there is still a reservation kept by the Service Tax Department as the bid price is quite low then the reserve price and this clause also has been brought to the notice of the High Court which will now decide the fate of the Airbus on September 13. The e-auction of the luxury Airbus A319 of Mallya, had attracted only two bidders, say sources. 

Mallya meanwhile continues to live in continued luxury--this time thousands of miles away at his safe hideout, somewhere in suburban London. Several legal notices sent to him are being received on a regular basis by his set of men located in different offices handling his business activities. Tax-payers also continue to bear the brunt of Mallya saga and the Airbus A319 too--this time in search of a safe hand, only to fly yet again 30,000 feet above the ground.