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This Article is From Mar 18, 2012

CBI writes again to Aviation Ministry for sanction in Airbus deal

The CBI has yet again written to the Civil Aviation Ministry seeking sanction to prosecute six of its officials for alleged irregularities

CBI writes again to Aviation Ministry for sanction in Airbus deal
Shinzo Nakanishi, Managing Director, Maruti Suzuki India
Markets will look to consolidate in the week ahead after most event risks like monetary policy and budget now over.
Mumbai:

The CBI has yet again written to the Civil Aviation Ministry seeking sanction to prosecute six of its officials for alleged irregularities in the over Rs 8,000 crore Airbus deal for supplying of 43 aircraft to erstwhile Indian Airlines in 2005.

 

The issue of granting sanction to the prosecution has been deferred for the last four months and the Aviation Ministry had sent back the file to the CBI in January saying the agency may reconsider its decision to file an FIR against its officials, including one of the rank of Additional Secretary, a move spurned by the investigating body, official sources said.

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A fresh reminder had been sent along with excerpts of some of the rulings of Supreme Court where delay by competent authorities had been severely criticised, the sources said.

 

The aviation ministry had reasoned out that the responsibility on the officials was not as big as projected by the CBI in its findings but the CBI wrote back saying that it stuck to its findings and the allegations needed a proper probe for which sanction may be accorded against the six officers which included an officer of the rank of Additional Secretary.

 

The CBI had registered a preliminary enquiry on January 14, 2010, against unknown persons of the Ministry of Civil Aviation and initial enquiry has been completed in connection with alleged irregularities and illegalities in purchase of 43 aircraft from M/s Airbus Industries.

 

Recently, Minister of State for Personnel V Narayanswamy had said on the floor of Parliament that the enquiry has allegedly found that "crucial concessions regarding investment of USD 175 million as worked out during negotiations by Empowered Group of Ministers with M/s Airbus Industries were deliberately not made part of the purchase agreement signed between Indian Airlines and M/s Airbus Industries".

 

The Minister said one officer of the level of Additional Secretary, who served as Director then, two officers of the level of Director, now retired, one officer of the level of Deputy Managing Director (also retired), one former officer of the level of General Manager and two officers of the level of Deputy General Manager are under investigation.

 

The deal was finalised in September 2005 when an Empowered Group of Ministers had given its nod after Airbus agreed to set-up the facilities along with the supply of 43 aircraft.

 

The Comptroller and Auditor General in its report in September last year said the commitments made by Airbus regarding creation of MRO and training facilities were "quite open-ended".

 

"In respect of the MRO, the wording facilitate creation of MRO facilities in India in association with the promoters did not give any indication of a binding commitment. There was no mention anywhere that the training and MRO facilities would be exclusive for India Airlines use or would be meant for all users of Airbus aircraft (public and private) in India and nearby," the report had said.

 

The CAG said Indian Airlines entered a joint Venture with EADS, parent company of Airbus, in 2008 but there was no tangible progress in that direction. It, however, said the training centres were started in Bangalore. 

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