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ED quizzes PC in aviation irregularities case
New Delhi: Senior Congress leader P Chidambaram was questioned by the Enforcement Directorate on Friday in connection with an investigation into alleged irregularities
New Delhi: Senior Congress leader P Chidambaram was questioned by the Enforcement Directorate on Friday in connection with an investigation into alleged irregularities including money laundering in the purchase of aircraft by two state-owned airlines that were merged.
The purchase dates back to the first term of the Congress-led United Progressive Alliance government.
Chidambaram was summoned to understand the decision to purchase 111 aircrafts for Air India and Indian Airlines for Rs 70,000 crore in 2009, an ED official said on condition of anonymity.
The ED, along with the Central Bureau of Investigation, is investigating the purchase, signed off by an empowered Group of Ministers headed by Chidambaram, then the finance minister.
The officer added that Chidambaram was questioned for almost six hours. “It was important to talk to him to know the decision-making process undertaken by the government (at that time).”
The agency earlier summoned the former Union minister on August 23 last year, but he was in CBI custody at the time in connection with an investigation into the INX Media case.
The CBI arrested him on August 21. He was released from Delhi’s Tihar jail on bail on December 4.
Chidambaram declined comment.
The case pertains to alleged losses suffered by Air India due to the purchase decision. It also involves irregularities in slots and bilaterals -- essentially agreements between two countries that allow each other’s airlines to operate services with a specific number of seats.
CBI is also investigating the corruption angle in the purchase, the leasing of a large number of aircraft by Air India consideration, surrendering profit-making routes to favour private airlines, and the merger of Air India with Indian Airlines.
The probe, initiated in 2017, is being conducted under direction of the Supreme Court.
The Comptroller & Auditor General (CAG) raised a red flag on the deal in its report in 2012 while terming the decision to purchase 111 planes using debt , “a recipe for disaster”. CAG noted that the decision was taken when the airlines were “in a crisis”.
The original proposal was to buy 28 planes for Air India and Indian Airlines. But the government decided to buy 68 planes for Air India from Boeing and another 43 for Indian Airlines from Airbus.
The ED has also questioned former civil aviation minister Praful Patel in the case.
Some analysts believe the purchase and the merger are responsible for the debt crisis at Air India. The state-owned airline, which the government hopes to privatise has over Rs 30,000 crore of debt on its books
