The ship was originally built on the order of Muammar Gaddafi's son, Hannibal, who also housed a shark tank in the ship.
The Rs 3685 crore liner, which has 26 lifts, four swimming pools, 21 bars, a bowling alley was to be named as the Phoenicia, a tribute to ancient civilisation in Africa.
The ship which was due to be delivered in Dec 2012, would have been the world's first cruise liner owned by an Arab company.
The fourth son of the slain leader's intention to buy the vessel was to entertain his guests, but all his plans went haywire after his father's regime was brought down by rebels.
Hannibal fled his country following the outrage that engulfed Libya during his father Muammar Gaddafi's regime.