Finish probe into Air India's deal of 111 planes for Rs 70,000 crore by June: SC to CBI

The Supreme Court on Thursday set a June deadline for the CBI to complete its probe into allegations of serious irregularities in the acquisition of 111 aircraft for Air India that had cost around Rs 70,000 crore during Praful Patel's tenure as civil aviation minister of the UPA government in 2005-06.

A bench headed by new Chief Justice J S Khehar also asked the investigative agency to look into the fresh allegations made by an NGO, Centre for Public Interest Litigation (CPIL), that Patel made Air India buy a biometric system for a hefty sum of Rs 1,000 crore.

"CBI shall take into consideration all the allegations made in the pleadings of the instant petition, and take a call thereon, based on the evidence collected. We hope and expect, that CBI will adhere to the time frame indicated to us, namely, June, 2017", the bench said.

Advocate Prashant Bhushan, appearing for the NGO, said that Canada's superior court has convicted a person for paying a bribe to the then minister for the purchase of a biometric system for a whopping Rs 1000 crore for the airline.

``CBI is already investigating the case and is likely to conclude the probe. PAC has also looked into it and report is filed in Parliament. What more do you want. We cannot hold their (CBI) arms. We must trust our agencies,'' the bench told Bhushan.

During the hearing, Attorney General Mukul Rohatgi informed the bench that most of the allegations referred to in the petition are a result of adverse comments made by the Comptroller and Auditor General (CAG) and the Public Accounts Committee of Parliament (PAC).

Some of the observations or remarks were made by Murli Manohar Joshi, as the Chairman of PAC, in February 2014 and a detailed response has been filed by the Ministry of Civil Aviation on January 19, 2015, he said.

Rohatgi said some further queries were also made by PAC and another detailed reply was filed by the ministry on May 3, 2016 and the subsequent report was tabled in Parliament. Rohatgi said that CBI has also been investigating the case since February 27, 2013, following the allegations and the probe is likely to be completed by June this year.

The AG said that 55 witnesses have been investigated and nothing survives in the petition as all the allegations are being looked into. Advocate Prashant Bhushan urged the court to not to dispose of the petition and the matter should be listed again in June for consideration of the status of the probe.

The CAG had criticised the decision to acquire 111 planes byAir India, saying it was "a recipe for disaster" and should have raised alarm in the government.

In a report, which was tabled in Parliament in September, 2011, the national auditor said the aircraft acquisition through debt had "contributed predominantly" to the airline's massive debt liability, which stood at Rs 38,423 crore at the time. The CAG also questioned the "speed" at which the acquisition process for 68 aircraft proceeded. Observing that many assumptions for the revised plan were "flawed", the CAG said.

SNAPSHOT

• Aircraft acquisition had created a massive debt liability of Rs 38,423 crore at the time which is still bleeding the national carrier.
• The CAG had criticised the decision to acquire 111 planes by Air India,saying it was "a recipe for disaster" and should have raised alarm in the government.
• CAG questioned the sudden increase in the number of planes to be acquired by the national carrier from 28 to 68 aircraft.
• The audit report said that the market conditions at the time or future prospects did not justify the acquisition.
• Advocate Prashant Bhushan claimed that Canada's superior court has convicted a person for paying a bribe to the then minister for the purchase of a biometric system.