<img title="Vijay Mallya&rsquo;s jet will face an auction for the third time" src="http://images.mid-day.com/images/2016/sep/Vijay-Mallya.jpg" alt="Vijay Mallya&rsquo;s jet will face an auction for the third time" /> Vijay Mallya&rsquo;s jet will face an auction for the third time
It seems anything associated with beleaguered entrepreneur Vijay Mallya is not finding any takers. Just when the service tax department was gearing up for its share after the sale of Mallya&rsquo;s personal jet, the Bombay High Court cancelled the deal that was won by a little known company SGI Commex.
The court yesterday observed that the jet was sold at a meagre Rs 27.39 crore, 81.8 per cent lesser than the reserved price set of Rs 152 crore and SGI Commex did not pay the full price within the stipulated date, to which the company said the service tax department did not follow up with them and that they received no confirmation of the receipt of the advance amount of Rs 1 crore that was paid to them.
The service tax department through additional solicitor general Anil Singh too claimed that the sale be cancelled since the quoted price is so less. Meanwhile, the counsel of SGI Commex said that since there is so much confusion about the deal, it better be cancelled.
On August 18, the service tax department had held the second auction of the personal jet Airbus A 319-133, which was eventually sold to art connoisseur G S Srivastava, Chairman of SGI Commex, who had planned to convert the plane into an art pilgrimage venture under the label of &lsquo;Beyond the Obvious&rsquo; and that it will not be used as a private carrier.
The Mumbai International Airport (MIAL) also joined the chorus and told the bench of justices S C Dharmadhikari and B P Collabawala that they incurred a cost of R3.95 crore as hangar charges and service charges by stationing the aircraft and demanded that it be taken out off the airport.
Justice Dharmadhikari who had ordered a probe into the deal earlier, said yesterday that the court will appoint a firm that will hire a third party auctioning committee by October 6 and that the Service Tax department and MIAL cannot raise any objection to the auction.

The Bombay high court observed that SGI Commex, who won the auction has not paid the money even after a month of the deal and that the quoted price was too less than the jet deserves

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The Bombay High Court observed that SGI Commex, who won the auction has not paid the money even after a month of the deal and that the quoted price was too less than the jet deserves

Mumbai: Vijay Mallya's jet auction deal cancelled

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Mumbai: Vijay Mallya's jet auction deal cancelled

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