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Wednesday 09-Nov-2011

CBI seeks sanction to prosecute Jt Secy and 5 others in Airbus case

Alleged irregularities in the over Rs. 8,000-crore Airbus deal for supplying 43 aircraft to erstwhile Indian Airlines in 2005

By  Traveltechie Bureau | Mumbai

CBI has sought Government's sanction to register a case against six Civil Aviation officials including a Joint Secretary for alleged irregularities in the over Rs. 8,000-crore Airbus deal for supplying 43 aircraft to erstwhile Indian Airlines in 2005. 

Sources in the agency said the sanction for prosecution had been sought recently and they were expecting a reply soon from the Civil Aviation ministry. Refusing to divulge the names of the officials against whom the sanction had been sought, the sources said it was mainly those who were in the negotiation team and had put their signatures on the files. 

The agency had registered a Preliminary Enquiry in the matter and had started probing the deal last year as it came to light that clauses which governed setting up of an MRO (maintenance, repair and overhaul) unit, training center and a warehouse, worth $ 17.5 crore by Airbus, were allegedly diluted by some officials, the sources said. 

The deal was finalized 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 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 centers were started in Bangalore.

PTI