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CBI initiates probe against Mascrenhas

CBI has registered a preliminary enquiry against suspended managing director of Air-India Michael P Mascrenhas and others to probe into allegations of corruption and irregularities against them.

The preliminary enquiry was registered last night by the Anti-Corruption Unit of the CBI after a request was received from the ministry of civil aviation to probe the allegations, agency sources said in New Delhi on Friday.

Mascrenhas alongwith another senior official was suspended on May 23 on charges of corruption and irregularities.

While suspending Mascrenhas, a veteran with 34 years in the airline, the government had asked the CBI to thoroughly inquire into allegations against him pertaining to "undue favours" shown to Air India's General Sales Agent in London.

The action against Mascrenhas and the other official followed reports by the ministry's chief vigilance officer and joint secretary alleging "overpayment of Rs 570 million to the London GSA which was detected by the Comptroller and Auditor General of India.

The agency sources said that CBI would "comprehensively" inquire into all aspects of the allegations against him and others.

The sources said the agency would probe all the aspects including conspiracy, alleged misuse of power and whether a criminal case could be registered.

The CAG report received by the ministry stated that "the payment of productivity linked incentive amounting to £10.79 million (about Rs 570 million) made to GSA during 1987-2000, outside the scope of agreement in addition to three per cent overriding commission and nine per cent normal commission was not justified.

"Flawed interpretation of the payment of PLI from first round rather than at the rate applicable for each slab further resulted in an excess payment of £2.031 million (about Rs138 million) during last three years ending 1999-2000," it said.

An analysis of all the reports "makes it amply clear that the management of AI over a period of time has been showing unwarranted generosity towards Welcome Travels, London, to the detriment of the commercial interests of AI," the report said.

The Ministry said that M B Sagar, the then acting CVO of AI, had submitted a report in October last year regarding "misuse of official position by senior officers including Mascrenhas, MD, by showing undue favour to the London GSA".

CAG had sent its observations to AI for comments, a government release had said adding, "the CAG has, however, found AI's reply not tenable."

Besides Mascrenhas, the government had also placed Air India's resident director at London P K Sinha under suspension.

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