Air India Aircraft Lease: CBI Closes Case Against Praful Patel After Seven Years of Investigation

The Central Bureau of Investigation (CBI) has concluded its investigation into a corruption case involving Praful Patel, a leader of the Nationalist Congress Party's (NCP) Ajit Pawar faction. The case, registered in 2017 following orders from the Supreme Court, focused on alleged irregularities in the leasing of aircraft for Air India by officials of the Ministry of Civil Aviation (MoCA) and Air India.

After a thorough investigation lasting around seven years, the CBI has concluded the case and given a clean chit to Praful Patel, along with officials from MoCA and Air India, the Wire reported, citing sources. The closure report for this case was filed before the competent court in March 2024, it further added.

The initial allegations against Praful Patel centred on accusations of abusing his position in conspiracy with officials from MoCA, Air India, and private entities to lease a large number of aircraft for the public carrier Air India. It was further alleged that these leases were undertaken despite an ongoing aircraft acquisition program for Air India.

The investigation unearthed several troubling practices within the aviation sector. Notably, the CBI's FIR in May 2017 highlighted that the leasing of aircraft for Air India was carried out despite the airlines operating with very low load due to extensive aircraft acquisitions, resulting in significant financial losses, especially on overseas flights.

During the investigation it was further revealed that the “lease agreements were adopted for acquiring aircraft on lease which did not have an early termination clause, so NACIL was unable to terminate the lease agreements since doing so would have resulted in NACIL paying all costs and lease rental differentials,” as quoted by The Wire.

“Air India with a view to benefit private parties dry leased four Boeing 777s for a period of five years in 2006, whereas Air India was to get the delivery of its own aircraft from July 2007 onwards. As a result, five Boeing 777s and five Boeing 737s were kept idle on ground at an estimated loss of 840 crore between 2007-09,” The CBI's FIR further alleged.

Additionally, parliamentary committees had previously criticized MoCA for continued leasing and renewal of aircraft lease agreements, even after Air India received new aircraft. The investigation also revealed instances where expensive aircraft were leased without pilots ready, leading to substantial losses for Air India.