Mallya's plane auction proves damp squib, gets Rs 1.09 cr bid

UAE-based aviation support company Alna Aero Distributional Finance Holdings offered only Rs 1.09 crore.

In another failed attempt at recovering money from beleaguered businessman Vijay Mallya through sale of his assets, a lone bidder turned up for the auction of his personal jet with a bid of Rs 1.09 crore (Rs 10.9 million) -- less a per cent of Rs 152 crore (Rs 1.52 billion) reserve price.

The department had fixed Rs 152 crore as the reserve price while the UAE-based aviation support company Alna Aero Distributional Finance Holdings offered only Rs 1.09 crore, a department official said.

The company had deposited the earnest money of Rs 1 crore as per auction norms.

The plane was attached by the Service Tax Department in December 2013, claiming tax dues of over Rs 800 crore (Rs 8 billion) from the Mallya's Kingfisher Airlines.

The e-auction was held through the department's official auctioneer, MSTC, last evening.

"The company has offered a paltry Rs 1.09 crore against our reserve price of Rs 152 crore. Since the bid was much less than our reserve price, we rejected the offer," a Service Tax Department official told PTI.

Earlier this year, the lenders' attempt to sell the Kingfisher House in the city for Rs 150 crore (Rs 1.5 billion) and the Kingfisher brands for Rs 367 crore (Rs 3.67 billion) failed, as no bidders turned up.

The official said the department may go in for a second round of bidding involving domestic aviation companies alone, or lower the reserve price, depending on what the government chooses to do.