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This is an archive article published on January 17, 1998

Ibrahim-Secy rift deepens

NEW DELHI, January 16: The rift between the Aviation Minister and his secretary has deepened with M K Kaw referring C M Ibrahim's decision t...

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NEW DELHI, January 16: The rift between the Aviation Minister and his secretary has deepened with M K Kaw referring C M Ibrahim’s decision to appoint special invitees on the joint board of Indian Airlines and Air India to the Law Ministry for its clearance. Kaw asked the Law Ministry two weeks ago, whether the minister’s decision to appoint three Non-Resident Indians (NRIs) to this post was legal and in keeping with the provisions of the Companies Act.

The latest face-off between the Minister and the Secretary occurred when three NRIs, Muscat-based Mohammed Ali, chief executive, Galfar Engineering and Contraction ILC, Yousaf Ali and Ajay Bhatia were nominated by Ibrahim on the joint board as special invitees nearly six months ago.

Anil Baijal, joint secretary in the Ministry, confirmed that the matter had been referred to the Law Ministry but added that it was examined by the internal legal advisor, Indian Airlines and found to be in order. He said that the Law Ministry was yet to give its opinion.

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The special invitees have already attended four board meetings, including the last on November 18.

Kaw and other aviation officials took offence at their presence, claiming it was a violation of the Companies Act and violated the commercial confidentiality of the board since the invitees had access to all records.

The note also wondered about their citizenship.

Kaw also asked the Aviation Ministry nominee on the board, joint-secretary, P K Brahma, to draft a note on the “improper and illegal nomination”. The note was drafted and promptly sent to the Law Ministry as senior officials felt “the matter should be examined by the Law Ministry and its opinion given”.

Meanwhile, Ibrahim got the internal law advisor of Indian Airlines to examine and clear the presence of the three special invitees last week.Minutes of the last board meeting which had confidential stamped on every page, read, “The chairman P C Sen welcomes the special invitees on the board”.

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It then went on, “The CMD apprised them of the financial aspects of the company and the future financial plans of the two airlines”.

The current controversy comes on the heels of the one where Ibrahim disagreed with Kaw on the sanction of the Tata-Raytheon airport at Bangalore, and asked him to withdraw the Cabinet note prepared on the matter. Ibrahim and Kaw also disagree on the ModiLuft revival plan.When contacted, Ibrahim refused to comment on the matter. Kaw was unavailable for comment.

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