Court issues notice on AI's aircraft purchase order

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SME Times News Bureau | 13 Oct, 2011
The Delhi High Court Wednesday issued a notice to the civil aviation ministry on an NGO's plea seeking a direction to the Central Vigilance Commission (CVC) to inquire into Air India's purchase order for 111 aircraft involving Rs.67,000 crore.

A bench headed by acting Chief Justice A.K. Sikri sought the government's response by Nov 23.

The court was hearing a public interest litigation (PIL) filed by the Centre for Public Interest Litigation (CPIL) through their counsel Prashant Bhushan.

"The petitioner (CPIL) requests this court to direct the CVC to conduct a thorough inquiry into aircraft acquisition deals of Air India and its loss of market-share by giving up profitable routes and timings, and the role played by the civil aviation ministry. If the CVC finds a prima facie case, it can then get the matter investigated through the CBI as per law," the application said.

Earlier, the high court issued notices to the central government, Air India, the CVC, the Central Bureau of Investigation (CBI) and the government auditor on the CPIL's petition.

Later, it also asked the CVC and the auditor about action taken by them on the issues raised in the petition.

The NGO, in its fresh application, cited the Comprotller and Auditor General (CAG) report to support its plea that the civil aviation ministry acted in "haste and in mala fide" manner.

The PIL alleged that the ministry through its deliberate and mala fide decisions and actions, drove the Air India and the erstwhile Indian Airlines into heavy losses.

"The government went in for a huge fleet expansion programme in which purchase orders for 111 aircraft were given. This unnecessary expansion was made without any proper study and without any transparency. The purchase orders of the aircraft were given costing a whopping Rs.67,000 crore," it said.

The NGO said even parliamentary committees, in their reports, had recommended a probe into entire fleet expansion programme way back in 2010 but no action was taken.

"Foreign airlines were given unrestricted entry into India and major routes were given to them without taking any reciprocal benefits for Air India. Despite warning that these actions would result in heavy loss of market share to our national carrier, the civil aviation ministry continued with its unprecedented reckless actions. This was done when the ministry had forced Air India to purchase a large number of planes," said the petition.