Former aviation minister C M Ibrahim had ignored the directives of two Prime Ministers over inviting three non-resident Indians (NRIs) to the boards of Indian Airlines (IA) and Air-India (AI).
This is the finding of an inquiry by the civil aviation ministry. The report of the probe, ordered by the chairman of the Rajya Sabha, was submitted to the House on July 30.
The report also blames former civil aviation secretary M K Kaw for not informing the cabinet secretary of his minister's decision to ignore H D Deve Gowda and I K Gujral's directives.
The government is unsure of what action to take on the report.
The NRIs invited to the board were Yusuf Ali, managing director Emkay group, Dubai; Ajay Bhatia, president of the Indian Association, Dubai; and P Mohammed Ali, managing director, Galfar Engineering, Muscat. The report says while the first two were inducted on the recommendations of the high commissioner in Dubai, the third invitee was Ibrahim's choice.
The NRIs were on the boards from August 1997 to April 1998. Their induction snowballed into a controversy with MPs questioning the need to induct them.
Aviation ministry officials, however, pointed out that since the Gulf sector is very profitable for Indian Airlines and Air-India, it was felt the carriers would benefit from the knowledge and suggestions of the NRIs.
They added that invitees, in any case, cannot vote on board decisions.
Sources said Ibrahim acted primarily on the high commissioner's recommendations, but file notings indicate the minister ignored the Prime Ministers' directives.
It is not clear what action the BJP government will take on the findings of the report.
