CBI files FIR in aircraft deal, ex-aviation minister defends

Former civil aviation minister Praful Patel said the UPA government had adhered to all the processes for the purchase of the 111 aircraft for national carriers that cost Air India about Rs 70,000 crore. He also said the purchase decision was cleared by the former finance minister P Chidambaram-led Empowered Group of Ministers.

The Central Bureau of Investigation (CBI) has registered three separate cases in connection with the alleged irregularities in the purchase or hiring of the aircraft during the tenure of Patel.

The move by CBI is crucial as it has already initiated a preliminary inquiry into all these aspects after the Supreme Court's direction in November 2013.

Patel said when the UPA government came to power, Air India was struggling with its old fleet.

In 2003, the Vajpayee government decided to disinvest in Air India, and therefore no new acquisition was considered.

"In 2004, the UPA government decided to continue AI as a public sector undertaking (PSU). At the time, I informed the prime minister (Manmohan Singh) that it was difficult to turn around AI with its current fleet and precarious financial condition. The government decided there was need to continue AI operations but to induct new planes as the international and domestic competition was taking away customers," Patel said.

Accordingly, the AI board decided on a comprehensive long-term strategy to induct new planes and phase out the aging ones. Indian Airlines decided to purchase 43 Airbus 320s family aircraft and AI decided to induct the long -haul Boeing 777 and the new generation 787 Dream Liner. The AI board issued a tender, while IA had had already completed the tendering process during the previous government.

"I wrote to the PM informing him that since this was a large purchase, we should have an oversight committee to oversee the entire process. The PM appointed CG Somiah, a former CAG and CVC, to overlook the entire process,'' Patel said.

Later, the Cabinet Committee on Economic Affairs (CCEA) constituted the Chidambaram-led EGoM to discuss with manufacturers and negotiate the best possible price. "The EGoM finalised all transactions and orders with Boeing and Air Bus, respectively. The decision by EGoM was ratified by the PM and the Cabinet," he noted.

Patel reiterated that the entire process was done through bidding, and even before going to the Cabinet for ratification, his ministry wrote to the then CAG and CVC to examine all documents. However, he said they declined to do so saying that it was not required at that stage.

Further, even in the context of the number of aircraft, it is important to mention that even though the order was finalised in December 2005, all the aircraft have not been delivered as on the date, Patel said.

"Twenty three aircraft have been delivered in the last three years. If there was something wrong, it should have been addressed accordingly," Patel said.

He said the finance ministry had given a sovereign guarantee to cover the purchase in view of AI's precarious financial position.