The ministry of civil aviation today revoked the suspension order of former Air-India managing director Michael Mascarenhas on the basis of the CBI report exonerating him of corruption charges. It has, however, sought the opinion of the central vigilance commissioner on the CBI report.
The ministry had charged Mascarenhas for acting in concert with certain other officials of Air-India and misusing his official position to grant undue favours to Welcome Travels as Air India's general sales agent (GSA) in London in 1993 and 1998.
"Based on the CBI findings, the suspension has been revoked. A final decision to exonerate Mascarenhas of the levied charges would be based on the CVC's view of the CBI report," top level aviation ministry officials told Business Standard.
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The CVC is expected to submit the report before December 1, the day when Mascarenhas superannuates. Officials said if the CVC report comes later than that and even if it holds the former MD guilty of the accusation, the ministry would be in no position to freeze his post-retirement benefits. "Then there will be no punishment," said an official, adding that the ball was now in the CVC's court.
Mascarenhas could not be contacted for his comments. Senior ministry officials said that the aviation secretary A H Jung tried to prevent the suspension from being revoked. Jung, Air-India commercial director V K Verma and former aviation minister Sharad Yadav are understood to have differences over several issues including disinvestment of government stake in Air-India with Mascarenhas and are widely believed to be responsible for his suspension. Jung, however, refused to comment on the allegations.
The minister Syed Shahnawaz Hussain however, prevailed over him and signed the orders late in the evening.
The CBI report has held the other accused, Welcome Travels (ministry has been asked to recover the excess payments of Rs 2.5 crore made), HS Uberoi (then commercial director), K Bihari (then deputy commercial director) and PK Sinha (then regional director) guilty and has recommended that suitable action be taken against them. Accordingly, their suspension has not been revoked. A final decision would be taken after the CVC report is submitted to the ministry, officials said.
The ministry is yet to take a decision on the successor to Mascarenhas after November 30. It is likely that the ministry would suggest a fresh name to the (Appointment Committee of Cabinet) ACC and until the appointment is made, acting MD J N Gogoi would be asked to officiate, said officials.
The government had on May 22 suspended Mascarenhas as MD after the CAG had accused him of paying Rs 57 crore excess commission to the UK GSA Welcome Travels, which pushed Air-India into losses.
The aviation ministry had issued an order asking Gogoi, the deputy MD to take additional charge as MD. Thereafter, an ex-post facto approval of the ACC for appointing care-taker MD Gogoi as acting MD for Air-India had been sought.