AIR INDIA SCAM: 4 FORMER BABUS UNDER ED LENS

Role of at least four former senior officials of the civil aviation ministry is now under the scanner of the Enforcement Directorate (ED) as part of the agency’s money laundering probe pertaining to the alleged losses suffered by national carrier Air India in a multi-crore aviation scam during the UPA regime.

According to sources, the agency is preparing to examine four former officials of the civil aviation ministry as they played a crucial role in impartially allowing certain private airlines to operate on specific routes. “Investigators want to know under what circumstances permission were granted to certain private airlines to operate on specific route,” sources said. Sources, however, refused to divulge the identity of four former public servants.

The ED has already examined senior Congress leader and former Union minister P. Chidambaram in connection with the case. His statement was recorded under the Prevention of Money Laundering Act (PMLA). The case pertains to the purchase of 48 aircraft from Airbus and 68 from Boeing for around `70,000 crore in 2007.

In December 2005, the then Manmohan Singh Cabinet had approved the deal for 68 aircraft from Boeing Co by Air India. A year later, Indian Airlines signed up to buy 43 planes from Airbus. The two national carriers were later merged in 2007 to operate under the brand Air Indiathat too is being probed by the ED and CBI. It is suspected that the contract to buy 43 aircraft was finalised by a panel of ministers headed by P. Chidambaram in 2009.