(Representative image)

NEW DELHI: The Enforcement Directorate has started investigating money laundering charges in the merger of Air India and Indian Airlines and the purchase of 111 aircraft from Boeing and Airbus during the UPA government’s tenure.

The Rs 70,000 crore purchase of aircraft from Boeing and Airbus is being probed by the CBI, which had registered a case in May last year after the Supreme Court directed the agency to investigate the charges alleged in a PIL.

The national carrier went into a massive debt trap following the deal and by withdrawing from profitable routes, benefiting some of Indian and international airlines. In a subsequent audit report, the Comptroller and Auditor General too questioned the rationale of the national carrier ordering 111 aircraft when it was not required.

Before UPA came to power, the national carrier had proposed to purchase 43 aircraft. However, the order was revised on the assumption of change in market situation. The ED has registered multiple cases under the Prevention of Money Laundering Act to probe all issues, including merger of Air India and Indian Airlines, purchase of aircraft, surrendering of profitable routes and purchase of software for over Rs 200 crore.

The agency has received documents related to the deal and has started probing the role of then officials of the civil aviation ministry, Air India and Indian Airlines and some functionaries of the then UPA government.

The CBI FIR had said it was investigating unidentified officials of Air India, ministry of civil aviation and others on charges of criminal conspiracy, cheating and corruption. The CBI had said its probe “relates to decisions taken by the ministry during the UPA tenure which caused losses of tens of thousands of crore of rupees to the exchequer”.

