H C Orders To Revalue Mallya's Airplane
By Vamsi Krishna N : 21-Dec-2016
Bombay High Court has directed the Service Tax department on Tuesday to conduct a revaluation of the luxury Airbus A319 that belongs to Vijay Mallya. The court further directed the ST department to focus on the ground realities of the current condition of the Airbus, in this fresh exercise.
The orders have been issued after finding out that the bid amount is lower than the reserve price and so a revaluation of the aircraft has been ordered.
Justice S C Dharmadhikari said that, “We have been informed that the bids received under the e-tender falls short of the reserve price and the same cannot be accepted. We therefore direct the Service Tax Department to submit a valuation report before the court by January 19. If such a report is given then the court will give further directions in the matter. But if the department fails to do so, we will pass orders and consider the request made by the Mumbai International Airport Limited (MIAL) to shift the airbus elsewhere.”
According to the senior counsel that is appearing for MIAL’s statement to the High Court, it is revealed that the airbus under scrutiny has nothing of value remaining and is nothing than a scrap, and so it should be disposed off as soon as possible. It was also found that it is a mere waste to time to look for an additional buyer to sell the aircraft.
The senior counsel also advised to check whether the company, CJ Leasings which leased the aircraft to Mallya, is interested in buying back the aircraft as scrap.
However, CJ Leasings replied that it could not accept the offer, since the reserve price of $23.5 million is not at all realistic and so it cannot accept the offer.