Liquor baron Vijay Mallya's personal jet went up for auction for a second time today, in an attempt to recover over Rs. 9,000 crore that Mr Mallya owes banks in loan defaults for his now defunct Kingfisher Airlines.
The reserve price was set at Rs. 152 crore and an earnest deposit of Rs. 1 crore was mandated to take part in the auction.
But to the authorities' surprise, the private jet of Mr Mallya, who is known for his lavish lifestyle, could only attract one potential buyer, and a single bid of Rs. 1.09 crore.
"The company has offered a paltry Rs. 1.09 crore against our reserve price of Rs. 152 crore. Since the bid was much less than our reserve price, we rejected the offer," a Service Tax Department official told Press Trust of India.
The plane was attached by the Service Tax Department in December 2013, claiming tax dues of over Rs. 800 crore from the Mallya's Kingfisher Airlines.
Earlier this year, the lenders' attempt to sell the Kingfisher House in the city for Rs. 150 crore and the Kingfisher brands for Rs. 367 crore failed, as no bidders turned up.
The official said the department may go in for another round of bidding involving domestic aviation companies alone, or lower the reserve price, depending on what the government chooses to do.
