Sources in the probity watchdog said the decision was taken on the basis of a preliminary investigation being carried out by it in consultation with the Chief Vigilance Officers of the Ministry and its allied departments including the Directorate General of Civil Aviation (DGCA).
They said about 12 officials, named in two complaints to the CVC, were prima facie found to be involved in the wrong doings by extending favours to certain private airlines for securing jobs for their relatives.
Of these officials, eight were employed in the DGCA and remaining were at various positions in the Ministry.
"The Commission has recommended action against all the officials. The punishment ranges from withholding increment and promotions," a source said.
According to the source, the Ministry of Civil Aviation has also been asked to look into the case for possibility of criminal conspiracy and corruption on part of its employees which can be separated probed by agencies like CBI.
The complaints, which were received late last year, have alleged that certain senior officials of DGCA and Ministry of Civil Aviation were abusing their official positions to take undue benefits from private air carriers.
"The complainants have given details of Civil Aviation officials relatives employed with the private airlines. A detailed investigation was carried out and allegations were found to be true. Following which the action has been recommended," the source said. (MORE)