Want a luxury jet? Mallya’s plane goes on garage sale


Want a luxury jet? Mallya’s plane go on garage sale

Bengaluru | Red Newswire | May 12 02:00 PM IST.

The former billionaire’s jet has it all – great interiors, shower cabin, bar, private resting area etc. but, what is most appealing about them is Vijay Mallya’s vanity plate – VT-VJM! The Indian authorities have put the impounded aircraft up on sale to recover the dues, but the jet hasn’t found any takers yet.

The government has put off the auction of the jet for a month since only one party showed interest. The jet was grounded 3 years ago after the Kingfisher Airlines Ltd. collapsed.

This is latest attempt by government to recover dues from the defaulters as the country’s bank are struggling to get over the stress. Government has put the fugitive tag on Mallya after he left to U.K.. His carrier is also worth $1.4 billion.

Hatim Broachwala, a banking analyst said, “This shows the challenge for the government in recovering bad loans.”

The spokesman of Mallya Group, Sumanto Bhattacharya hasn’t made any comment yet.

Mallya’s Airbus Group SE A319 aircraft was seized by the service tax department and will now be auctioned on June 29 and 30. Till now, only the Dutch government has registered for the auction as reported by ET Now. Government said three-four more parties are interested but they need more time to take a look at the jet.

Marianne Wuite, The Hague spokeswoman said, “The only thing we can say is that we are currently looking at replacing the Dutch government plane. We will inform parliament as soon as we have taken a decision on that.”

In the auction advertisement, government has listed the jet for a price of $87 million and said the jet was “designed for exotic and luxurious use and has “attractive exterior and interior layout and design.”

Mallya always said that his airline was “unfortunate commercial failure.” The government is now seeking his deportation. Mallya, however has said he is not a “willful defaulter.”

Source: Bloomberg