Mallya Jet Sold for Rs 35 Crore | CORPORATE ETHOS

Mallya Jet Sold for Rs 35 Crore

By: | June 30, 2018
aircraft

June 30: Vijay Mallya, the fugitive financial offender, has found a purchaser for his luxury jet. The jet holds its owners initials ‘VT-VJM’ in its registration number. Three auctions held earlier to sell the jet were failures.

The bid opened at $1.9 million and closed for the bid price of $5.05 million which translates to Rs 34.8 crore. LLC, US- based Aviation Management Sales came out as the highest bidder. The highest bid has to be approved by the Bombay High Court. When compared to the e- auctions conducted earlier by the service tax department, this one got the highest bid.

With the auction, Mallya’s Kingfisher Airlines aimed to revive the dues and penalties it owes to the service tax department. As per the sources aware of the development, the corporate jet with its customized interiors does not have any rivals when it comes to luxury. Around $ 100 million is the present listed price of the jet. The jet was sold for a meager amount of $ 5.05 million due to its grounded condition. The carrier was not in a good condition as it was grounded for almost 5 years.

The jet which comes with a bedroom, bar and a conference area is equipped to accommodate 25 passengers and six crew members. Apart from these, the jet houses various other facilities too. The jet is parked at the Chhatrapati Shivaji International Airport, Mumbai. The airport authorities had moved the Bombay HC requesting the removal of the jet from their land.

The authorities stated that they were facing scarcity of space due to the jet parked at the airport. It was said to be losing Rs 13,000 and Rs 15,000 per hour. In April 2018, the official overseer committed to Karnataka HC was advised by the Bombay HC to sell the jet owned Bengaluru-based airline.