ED set to probe big fraud in Air India-Indian Airlines merger

New Delhi, Oct 20: The Enforcement Directorate has registered four cases of money laundering in connection with the controversial merger of the Air India and Indian Airlines that took place during the UPA regime.

The ED has also found irregularities in the procurement of 111 aircraft by the two state run carriers in the years 2005-2006. The ED has registered the Enforcement Case Information Reports or ECIRS under the Prevention of Money Laundering Act.

It may be recalled that the Central Bureau of Investigation had registered four FIRs in connection with the merger and also the airplane deals. An ED official informed OneIndia that it would be probe and ascertain if the alleged irregularities led to the generation of black money. Further we would also find out if this money was laundered to create illegal assets by the accused persons, the official also said.

Further the ED would summon some officials who were involved in the decision making by the then UPA government to merge the two airlines. Further under the cloud is the decision to procure and then lease 111 airplanes. This had caused a huge loss to the public exchequer, while on the other hand foreign aircraft manufacturers had gained immensely.

The CBI had registered cases against the unidentified officials of Air India, Ministry of Civil Aviation. It had accused them of criminal conspiracy, cheating and corruption. The CBI had also registered a case against unknown officials of Air India, SAP AG, a German firm, computer major, IBM. The case pertained to the alleged irregularities in the procurement of software worth Rs 225 crore by the national carrier in 2011.