CBI may probe Raymonds Juhu land deal

The three officers were identified by the AAI’s vigilance department "serious irregularities" in leasing out 3,500 square metres of land at Juhu airport without the mandatory approval of the board of directors.

According to the inquiry report, the AAI officers had shown favour to the Mumbai firm by giving the land at the rate of Rs 495 per sq metre as against the rate of Rs 1670 per sq metre recommended by the Aerodrome Officer (AO).

In fact, the rate of Rs 1670 per sq metre was low as the authority had received offers ranging from Rs 2,500 to Rs 6,000 per sq metre a year from various business houses for the Juhu land in response to its notice inviting tender (NIT) in July 1995.

Further, norms provide for payment of royalty of two per cent of annual turnover of the commercial earnings by the licensee but no such rates were fixed. The land was leased through direct negotiations, without the established procedure of inviting tenders.

While one of the three indicted officers says the land was leased for aeronautical purposes as per the power granted to the top management of the AAI, the inquiry report points out that the Mumbai company did not require such a vast piece of land as it had just one helicopter.

In fact, the company had initially requested for some hanger space but later asked for 3,500 sq metre.Earlier, five more officers were indicted offering leased of land worth Rs 300 crore at Juhu airport to a Mumbai-based industrialist at a throwaway price.