Ajit Singh met Sonia Gandhi over Jet-Etihad deal controversy?

Civil Aviation Minister Ajit Singh on Thursday met United Progressive Alliance (UPA) Chairperson Sonia Gandhi amid a raging controversy over the Rs 2,058-crore deal between Jet Airways and Gulf-based Etihad Airways.

However, sources told the Press Trust of India that the meeting was of political nature and not in connection with the controversy that has surrounded the deal, although it is said to have come up for discussion.

The stake sale deal has been in the face of the storm of late with objections being raised by the opposition parties as to the nature of the deal.

Abu Dhabi-based Etihad Airways had on April 24 announced its decision to purchase 24 per cent stake in Naresh Goyal-led Jet Airways for Rs 2,058 crore. Goyal owns 51 per cent stake in the airline.

However, on June 13, the Foreign Investment Promotion Board (FIPB) deferred a decision on the deal, saying it required more clarity on control and ownership structure of the Indian airline.

Senior BJP leader Jaswant Singh, CPI-M leader Gurudas Dasgupta, Trinamool Congress' Dinesh Trivedi and Janata Party chief Subramanian Swamy, each, have shot off separate letters to Prime Minister Manmohan Singh, questioning the nature of the deal.



The Prime Minister's Office (PMO) has, meanwhile, come out with a statement, rebutting reports that there were differences within the government over the deal.

While Ajit Singh has strongly defended the deal, saying those opposing it were "long on politics and short on facts', the PMO has clarified that the stake sale is still under scrutiny.

Singh, while calling the Jet-Etihad deal an important one, has also said it is "the first big deal in Civil Aviation Ministry. In terms of Foreign direct investment, it is bigger than any other deal this year."

With inputs from PTI