Jet-Etihad deal under CVC lens after a BJP MP's complaint

The Rs 2,058-crore deal between Jet Airways and Abu Dhabi's Etihad Airways has come under cloud with the Central Vigilance Commission (CVC) looking into a complaint of alleged corruption in the matter.

Bharatiya Janata Party (BJP) MP Nishikant Dubey last month complained to the CVC alleging serious fraud by the two carriers to cheat the government. Dubey had accused Jet of colluding with senior officials of the civil aviation ministry which will cause loss of Rs  500 crore to the national exchequer. A CVC official confirmed that the complaint had been received and the matter is being probed.

The multi-crore agreement between the two airlines has been under controversy ever since it became public with the main opposition party BJP alleging that there is "something fishy" in the deal.

Last week, Dubey had also written to Prime Minister Manmohan Singh regard-ing the deal with copies sent to Central Bureau of Investigation, CVC and Cabinet secretary Ajit Seth alleging conspiracy by some elements to get the agreement approved.

Responding to the Opposition's allegations, the Prime Minister's Office (PMO) last week said that the stake sale matter is still being examined and issues raised have been referred to concerned ministries.

Last month, a parliamentary committee had recommended that the bilateral agreement with Abu Dhabi be reconsidered by the government to protect the interests of Air India and airports.

The committee also charged that the 32 per cent premium to Jet's April share price offered by Etihad could be a payment for back-door entry to the huge avi-ation market in India.

Besides the Foreign Investment Promotion Board, the Securities and Exchange Board of India, fair trade watchdog Competition Commission of India (CCI) and the Department of Industrial Policy and Promotion have also raised cer-tain questions over the deal, which is the largest foreign investment proposal in the aviation sector.

On June 13, FIPB had deferred a decision on the deal saying it requires more clarity on control and ownership structure of Jet. Jet chairman Naresh Goyal owns 51-per cent stake in the airline.