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This is an archive article published on October 11, 2011

HC to hear plea for inquiry into deal to buy 111 aircraft

Earlier,the high court had issued notices to Centre,Air India,CVC,CBI and CAG on CPIL's petition.

The Delhi High Court is likely to hear tomorrow a fresh plea of an NGO seeking a direction to the Central Vigilance Commission (CVC) to inquire into alleged purchase orders of 111 aircraft costing a whopping Rs 67,000 crore to Air India.

A bench headed by acting Chief Justice A K Sikri would consider the fresh application filed by Centre for Public Interest Litigation (CPIL).

“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 an 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.

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Earlier,the high court had issued notices to Centre,Air India,CVC,CBI and CAG on CPIL’s petition.

Later,it had also asked CVC and the CAG about action taken by them o n the issues raised in the petition.

The NGO,in its fresh application,cited the CAG report to buttress its plea that the Civil Aviation Ministry acted in “haste and in mala fide” manner.

The PIL alleged that the Ministry of Civil Aviation “through its deliberate and mala fide decisions and actions”,drove the Air India and Indian Airlines into heavy losses.

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“The government went in for a huge fleet expansion program 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 aircrafts 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 program” way back in 2010 but no action has been taken.

Besides the fleet expansion programme,the government gave away profitable routes to private airlines in the name of rationalisation.

“Through deliberate and mala fide decisions of the government,major profit making routes and timings were given to one or two private airlines causing a huge loss of market share to the national carriers.

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“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,” the CPIL application said.

CAG has examined the entire aspect of purchase of aircrafts and the role of the civil aviation ministry,it said,adding that the report of the top accounting body confirmed the plea of CPIL.

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