Home Ministry grounds Mesco aircraft

In a terse missive sent to the Civil Aviation Ministry last month, MHA joint secretary Sangita Gairola said involvement of directors in cases of financial irregularity/impropriety would be a factor in determining the decision whether security clearance be given to a company or not.

The MHA move, ostensibly on the grounds of financial irregularities of Mesco Airlines8217; directors, caused ripples in the Civil Aviation ministry since this is not really the MHA8217;s purview. Several other firms in many other areas have been accused of financial irregularities, and non-payment of loans to banks and financial institutions but their licenses have never been cancelled on this ground, by any wing of the government.

The issue was even raised by the Civil Aviation secretary last month but the ministry finally fell in line when MHA officials said the matter was more serious 8212; no official, however, actually gave details of what these more 8220;serious8221; charges were.

The trend-setting MHA8217;s directive also pointed out that the CBI had registered two cases against three of its five directors namely: Jitendra Kumar Singh, Rita Singh and Natasha Singh. It was also stated that investigations against the directors and the company were continuing and cases had been registered against them after raids were conducted on the group premises and various complaints by share-holders.

It was also stated by the MHA that Mesco had also cheated the Airport Authority of India by misrepresenting facts regarding hanger no 10 and occupying 35,000 sq. feet area at Juhu in Mumbai causing a loss of Rs 20.94 lakh.

The 2-page note was sent by the MHA on March 25, 2000, after the Civil Aviation Ministry sent Mesco8217;s request to the Home Ministry for its routine security clearance. Its seven year permit as non-scheduled operator was validuntil March 31, 2000, and MHA8217;s security clearance is mandatory for renewal of the licence in the aviation sector among others.

Instead, the MHA slapped the company with a pack-up notice. This came as a shock to the high-flying chairperson of the Mesco group, Rita Singh, whose Mesco Steel, Mesco Leather and Mesco Pharma are already in the red.

This is perhaps the first time that the MHA refused to give 8220;security clearance8221; to a company which indulged in financial irregularity and its directors in financial bungling.

It is learnt that before deciding not to renew Mesco8217;s licence, Civil Aviation secretary Ravindra Gupta held talks with Home Ministry officialsas it was felt that the the MHA was going beyond its brief by looking into alleged financial irregularities of a company.

Also, critics of the Home Ministry decision say that Mesco is a 100 per cent Indian-owned company and its helicopters have been hired by ONGC, Himachal Pradesh and Orissa governments. Ironically, Union Home Minister L K Advani travelled to Shimla from Delhi in the Mesco helicopter last month to participate in a function to mark the completion of two years of the Dhumal government.

However, after initial reluctance, the Civil Aviation Ministry fell in line. When contacted, Civil Aviation Minister Sharad Yadav confirmed that Mesco8217;s licence to fly had expired and the MHA had indeed sent 8220;some report.8221; And that Mesco had been grounded. But he declined to elaborate.