Mumbai airport sells Mallya jet to scrap dealer

Jet sold for a local scrap dealer for a mere Rs 22 lakh to recover dues

A midsize jet belonging to UB Group chairman Vijay Mallya was auctioned by Mumbai International Airport Ltd (MIAL) to a local scrap dealer for Rs 22 lakh, to recover dues.

Last December the airport operator had issued bids from interested parties to take the 30-year-old HS125-700B aircraft, a nine-seater, on an “as is where is basis”.  

The plane was registered in the name of  Shaw Wallace and Company, Kolkata, according to the Directorate General of Civil Aviation (DGCA) records. The aircraft was earlier owned by EIH (Oberoi group). Mallya’s UB Group acquired Shaw Wallace in 2005 and it is now a part of United Spirits.

Simple Enterprises, a Mumbai-based scrap dealer, acquired the aircraft in the auction, which saw bids from over 10 other scrap dealers.  Over recent days, workers have been stripping the aircraft of its engines and spares.

The nature of the dispute between MIAL and UB, leading to the decision to sell the aircraft, is not known.

Mallya's Kingfisher Airlines faced difficulties in paying suppliers and airports, and was eventually grounded, with its aircraft being repossessed by lessors. According to DGCA records, Kingfisher still has five ATR aircraft, one Airbus A319 private jet and two EC-155B1 helicopters.