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CBI to probe Air India deals under UPA rule

May 30, 2017 12:42 am | Updated July 08, 2017 04:46 pm IST - NEW DELHI

The Central Bureau of Investigation (CBI) on Monday registered three cases into alleged irregularities in the purchase of 111 aircraft worth ₹ 70,000 crore, leasing of planes and surrender of profit-making routes, besides an inquiry into the Indian Airlines-Air India merger during the United Progressive Alliance (UPA) regime, allegedly causing losses running into thousands of crores.

CBI spokesperson R.K. Gaur said the provisions for alleged criminal conspiracy and corruption have been invoked against unknown officials of the Civil Aviation Ministry and Air India in view of the Supreme Court’s directives on January 5 while hearing a petition of the Centre for Public Interest Litigation.

The first case is against unknown Air India and Civil Aviation Ministry officials, apart from unidentified private persons.

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The allegation pertains to the purchase of 111 aircraft for the national airline, costing about ₹70,000 crore, to benefit foreign manufacturers.

“Such a purchase caused an alleged financial loss to the already stressed national carriers,” said a Central Bureau of Investigation official.

The second case involves allegations of leasing of a large number of aircraft without due consideration, the proper study of routes, and a marketing or price strategy. It was also alleged that the aircraft were leased even as an aircraft acquisition programme was under way.

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In the third case, the CBI will investigate allegations of giving up profit-making routes and profit-making timings of Air India in favour of national and international private airlines causing a huge loss to the national carrier.

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