The Comptroller and Auditor General (CAG) has rapped Air India for failing to raise the employees' contribution under a contributory medical benefit scheme (CBMS) and suffering under-recoveries worth over Rs 7 crore.
In its latest report tabled in Parliament today, the CAG pointed out that the airline company had itself set up two committees to review the CBMS and both had recommended increasing the ceiling of employees' contribution.
During 2006-09, the company signed agreements with nine unions for increase in pay and allowances but "could not effect an upward revision in the contribution under CMBS".
As a result, the expenditure incurred on the scheme was Rs 46.82 crore and "there was under-recovery of contributions under CMBS of Rs 7.28 crore" between April 2006 and March 2009.
The CAG said Air India had been "availing of working capital loan for its day to day operations carrying a high rate of interest".
The gap in the total amount recovered through the CMBS contribution and the actual amount spent to provide medical facilities to the employees "further burdened the already strained resources of the company", the report added.