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Bombay HC asks Service Tax Department to revaluate Vijay Mallya’s plane

Staff Reporter | Updated on: Thursday, May 30, 2019, 10:30 AM IST

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Mumbai: The Bombay High Court on Tuesday directed the Service Tax Department to revaluate the private luxury airbus of former liquor baron Vijay Mallya. The HC clarified that it would consider the department’s plea for re-auction of the airbus only after perusing the revaluation report.

The direction came from a division bench headed by Justice Satyaranjan Dharmadhikari while hearing a notice of motion moved by the Mumbai International Airport Limited (MIAL) seeking parking charges of nearly Rs 3.5 crore, as the private jet is parked in one of the hangars in city’s airport.

Also Read: CBI gets non-bailable warrant against Vijay Mallya, will seek his extradition

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It may be recalled that the Department had conducted an auction to sell Mallya’s jet in order to recover some chunk of the Rs 500 cror dues. The Department had confiscated Mallya’s private Airbus 319 in December 2013, and the same is still parked in the hangar near Kalina, Mumbai. Earlier, the bench had directed the department to ‘expedite’ the process of selling Mallya’s private aircraft. The bench had also said the department, which had before conducted an auction to sell Mallya’s jet in order to recover some chunk of the Rs 500 crore dues, to make use of all the available machineries to re-auction the said aircraft and suggested it not to waste time in looking for a new agency for conducting the auction.

Also Read: CBI moves extradition request for Vijay Mallya

However, on Tuesday the counsel appearing for the department told the bench that they had called for bids from various potential buyers but the bids they received were very low. The counsel informed the bench that all the bids they received were less than Rs 152 crore – reserve price.

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After hearing the submission, the bench directed the department to carry out a revaluation of the base price of the said jet and file a report in a sealed envelope on January 19.

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Published on: Wednesday, December 21, 2016, 08:40 AM IST