Fugitive financial offender Vijay Mallya¡¯s luxury jet, which bears his initials ¡®VT-VJM¡¯ in its registration number, finally found a buyer on Friday.
After at least three failed auctions and protracted legal procedures, the Airbus A319-133C VT-VJM MSN 2650 was auctioned by the official liquidator attached to the Karnataka high court in Bengaluru.
The US-based Aviation Management Sales, LLC, emerged the highest bidder as the auction was closed for the bid price of Rs 34.8 crore ($5.05 million). The highest bid is subject to the approval of the Bombay high court. The bid is higher than the ones received at the previous e-auctions conducted by the service tax department. The bid opened at $1.9 million.
The auction was held to recover dues and penalties owed to the service tax department by Mallya¡¯s Kingfisher Airlines (now in liquidation). ¡°The grounded corporate jet is a sort of a prize catch as its customised interiors are unmatched in luxury. While its current list price would be approximately around $100 million with a standard specification, it was sold at dirt cheap price due to its grounded condition. It was not in airworthy condition as it has been grounded for nearly five years,¡± said a person privy to the development.
AFP
The jet can accommodate 25 passengers and six crew members. It has a bedroom, bathroom, bar and conference area, among other amenities. The service tax department had parked it at Chhatrapati Shivaji International Airport, Mumbai, which moved Bombay HC with a plea seeking its removal from the airport.
The operator informed the court that it is facing a space crunch at the airport and because of the parked jet, it was losing between Rs 13,000 and Rs 15,000 per hour. The Bombay HC directed the official liquidator attached to the Karnataka HC in April 2018 to sell it as the airline was based in Bengaluru.