Question : CARIBJET WET LEASE DEAL



(a): whether attention of the Government has been drawn to the news item captioned `After Caribjet, A-I MD faces another probe` published in Pioneer dated March 30, 2000;

(b) if so, the details thereof; and

(c) the reaction of the Government thereto?

Answer given by the minister

THE MINISTER OF CIVIL AVIATION

(SHRI SHARAD YADAV)

(a): Yes, Sir.

(b) & (c): Shri S.Narayanswamy, a retired employee of Air India had been appointed as a consultant in Air India from October 1997, by the Managing Director, Air India on monthly emoluments of Rs.20000/- & transport. His appointment has been terminated on 15.04.2000. Shri Narayanswamy was one of the Officers named in the report dated 21.12.96 of the Chief Vigilance Officer of Air India in Atmaram Mansion (formerly Scindia House) case for certain alleged lapses. Air India Vigilance is looking into whether the appointment of consultant(s) is in consonance with Air India Service Regulations. Regarding his role in arbitration proceedings against the termination of wetlease of aircraft from M/s Caribjet, the CBI has already registered a Preliminary Enquiry on 30.3.2000 which will inter-alia look into whether adequate efforts were made by Air India officials and their legal advisors to protect the commercial interests of Air India in arbitration proceedings.