In Air India's deal, ED files money laundering case while NCP leader Praful Patel was Aviation Minister during UPA rule

Amidst the trouble of funds and debt in the Air India, a fresh issue has come up as the Enforcement Directorate has registered criminal cases to probe money laundering and allegations of irregularities of four deals that were inked during the UPA regime.

The controversial merger of Air India and Indian Airlines and the acquisition of 111 aircraft was made under the UPA rule, while NCP leader Praful Patel was the Civil Aviation Minister.

The agency has filed at least four Enforcement Case Information Reports, the ED equivalent of a police FIR, officials told PTI Friday.

The ED, as of now, has obtained some relevant documents pertaining to the case from the airlines and other departments who are connected with the case and the issue has been termed “politically sensitive.”

CBI had last year registered 4 cases in the matter and had said that “relate to decisions taken by the ministry during the UPA tenure which caused losses of tens of thousands of crore of rupees to the exchequer."

CBI had also alleged that “such a purchase caused an alleged financial loss to the already stressed national carriers.”

The CAG in 2011 had already questioned the rationale behind the merger of Air India and Indian Airlines and even to order 111 airplanes- 48 from Airbus and 68 from Boeing for about Rs 70,000 crore in 2006.

The CAG report categorically said “The entire acquisition (for both Air India and Indian Airlines) was to be funded through debt (to be repaid through revenue generation), except for a relatively small equity infusion of Rs 325 crore for Indian Airlines. This was a recipe for disaster and should have raised alarm signals in Ministry of Civil Aviation, Public Investment Board and the Planning Commission.”

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