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June 12, 2001
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Suspended Air-India MD moves court

Suspended Air India (AI) Managing Director M P Mascrenhas on Tuesday filed a petition in the Bombay High Court challenging the action taken against him on a 'trumped up' charge alleging excess payments of productivity-linked incentive (PLI) to London-based general sales agent (GSA) Welcome Travels.

The respondents are the Union of India, Civil Aviation Minister Sharad Yadav, Civil Aviation Secretary A H Jung, Air India's Commercial Director V K Verma and former acting Chief Vigilance Officer M B Sagar.

Mascrenhas has challenged the procedures employed by the ministry to suspend him and claimed that AI had followed established procedures and precedents in granting PLI to the London-based GSA.

Mascrenhas also denied the charge of paying excess incentives to the London agent and alleged that accusations were 'concocted and trumped up'. The decision taken was a collective and not an individual one, he claimed.

Mascrenhas has also alleged in the petition that the ministry interfered in day-to-day functioning of the airline and issued instructions and directions even for promotions abroad and transfers, which were outside its domain.

The inquiry held by an acting Chief Vigilance Officer was illegal, void, malafide and held at the behest of the ministry, he alleged.

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