Saturday, January 07, 2017

Air India: SC asks CBI to probe unnecessary purchase of aircraft during UPA regime

The Supreme Court has asked the Central Bureau of Investigation (CBI) to look into the allegation of an unnecessary purchase of 111 aircrafts and lease of some others by Air India between 2004 and 2008 when the Congress-led United Progressive Alliance (UPA) was in office. This entailed a cost of Rs67,000 crore to the loss making airline, which has needed a bailout at the expense of the exchequer.

In the petition before the apex court, Centre for Public Interest Litigation (CPIL), a non-governmental organisation (NGO) had made several allegations, including allotment of bilateral routes to private airlines at the expense of the national carrier. The allegations by the CPIL also include an aborted order for the porches of biometric passenger identification system allegedly at an inflated price.

Praful Patel, leader of Nationalist Congress Party (NCP) was the Civil Aviation Minister when the aircraft were purchased and taken on lease.

Noting that most of the allegations in the petition by the CPIL have resulted in adverse comments by the Comptroller and auditor general (CAG) and Public Accounts Committee (PAC), the SC Bench of Chief Justice Jagdish Singh Khehar, Justice NV Ramana and Justice DY Chandrachud said: "... the CBI shall take into consideration all the allegations made in the pleadings of the instant petition, and take a call thereon, based on the evidence collected. We hope and expect, that the CBI will adhere to the time frame indicated to us, namely, June 2017".

The CBI is already investigating into the allegations and had registered case on 27 February 2013.

The SC order vindicates what Jitender Bhargava, former Executive Director of the carrier had written in his book, 'The Descent of Air India'. This book was withdrawn by its publisher with an apology to Mr Patel, the then union Minister for Civil Aviation. It was immediately re-published by Mr Bhargava himself. He also faced a defamation charge. This entire book was made a part of the PIL filed by CPIL.
06/01/17 Money Life
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