Monday, October 29, 2018

ED notice to top Airbus executive in Rs 8,000 crore Indian Airlines deal

Airbus executive vice-president Kiran Rao and six others accused of money laundering in a 13-year-old Rs 8,000-crore deal to supply 43 passenger planes to the erstwhile Indian Airlines have been slapped with legal notices. A person in the know told The Economic Times that on October 16 the Enforcement Directorate issued notices to the above people under the Prevention of Money Laundering Act (PMLA). "We understand that some of the accused are currently not present in India, but they will be required to come to New Delhi in the next one month," the source added.
The Central Bureau of Investigation (CBI) had started probing the deal in 2010 as it came to light that clauses governing the setting up of an MRO (maintenance, repair and overhaul) unit, training centre and a warehouse by Airbus were allegedly diluted by some officials to favour the French aviation firm. The deal had been finalised in September 2005, under the UPA-I regime, when an Empowered Group of Ministers had given its nod after Airbus agreed to set-up the facilities along with the supply of 43 A320 family aircraft to Indian Airlines, which merged with Air India in 2007.
Then, in 2013, the investigative agency had registered a case for alleged irregularities in the deal and had subsequently booked Airbus Industries and seven officials, who had held senior positions in the Indian Airlines. Officials including deputy managing director, director (planning), director (finance), functional director (engineering), general manager (engineering) and two deputy general managers had reportedly been made accused in the case. Airbus had then denied charges of any irregularity.
29/10/18 Business Today