In the process, the ministry deviated from “laid down procedure” and “norms of propriety”,  seemingly for favouring the US manufacturer, Boeing, that was paid an additional $ 19.7 million (Rs 78.8 crore). The three aircraft are to be delivered to the Indian Air Force by October, 2008.

The deal was valued at Rs 936.93 crore which comprises a Rs 202.93 crore component to buy “self protection suits” for the jets, which alone came with a price tag of Rs 734 crore.

Though Boeing’s commercial offer was valid for four months against the obligatory 12 months, norms were overlooked and the company was allowed to extend the validity of its offer after opening of price bids with cost escalation of $ 19.7 million.

Initially the need was to replace two aged Boeing aircraft of IAF’s communication squadron. But a third plane was purchased on the plea of stringent servicing schedule leading to less availability of the aircraft.

However, the CAG says that the third aircraft was avoidable because of three reasons — only 27 per cent of the existing Boeing was used by the VIPs between 1999 and 2007; purchase of four Embraer jets from Brazil for VIP travel and upgradation of eight An-32 aircraft for VIP use.

Since 55 per cent of total flying done by the existing Boeing planes were meeting the training commitments and two more Boeings are available for the same purpose, buying a new aircraft at a cost of Rs 312.44 crore is unacceptable, the CAG noted.