CVC seeks factual report on Rs 2k-cr Jet-Etihad deal

Deal is yet to get clearance from FIPB

CVC seeks factual report on Rs 2k-cr  Jet-Etihad deal

Taking up a complaint filed by BJP MP Nishikant Dubey, the Central Vigilance Commission (CVC) has sought a report from Civil Aviation Ministry on the Rs 2,058-crore deal between Jet Airways and Abu Dhabi-based Etihad.

Dubey, an MP from Jharkhand, had alleged that there was corruption in the deal and sought an investigation by the CVC. He also claimed that there would be a loss to the tune of Rs 500 crore to the exchequer due to the deal, which is one of the largest foreign investment (FDI) proposals in the aviation sector.

Officials said the CVC has now asked the Ministry to submit a “factual report” on the deal. The commission has forwarded Dubey’s letter to the Chief Vigilance Officer of the Ministry. The Revenue Department of Finance Ministry is also looking into the proposed deal to identify the beneficiaries and check whether or not it is structured in a way to evade taxes.

The deal has not got the final clearance and Foreign Investment Promotion Board, Sebi, Competition Commission of India and Department of Industrial Policy and Promotion have raised certain queries, including the control of the airline.

Etihad had announced its decision to purchase 24 per cent stake in Jet Airways for Rs 2,058 crore in April this year but the FIPB in June deferred a decision on the deal, saying it required more clarity on the control and ownership structure of the airline. Jet chairman Naresh Goyal owns 51 per cent stake in the airline.

Dubey had alleged “strategic conspiracy” by some elements to get the deal approved.
He wrote a second letter to Prime Minister Manmohan Singh on Wednesday alleging that certain members in the government seem to be hand in glove with the private business to help the latter at the cost of national interest.

Several politicians, including  BJP leader Jaswant Singh, CPI’s Gurudas Dasgupta, Dinesh Trivedi (Trinamool Congress) and Janata Party chief Subramanian Swamy, have raised concerns about the deal.

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