Probe against Airbus intensifies

NEW DELHI:  Financial probe agency Enforcement Directorate (ED) is said to have intensified its probe into whether a $2.2 billion Airbus SE jetliner sale to national carrier Air India involved bribes, according to a Bloomberg report. It said that ED is inspecting a payment of `1.42 billion ($20 million) linked to the 2006 purchase of 43 jets by Air India’s domestic arm Indian Airlines, as well as a commitment to provide aircraft-overhaul facilities that were never built.

Speed in investigation comes at a time when Airbus recently agreed to a $4 billion settlement for years of illegal payments to key decision makers, including ones in India, in its efforts to win orders. According to the report,  ED is also looking at why the maintenance provision, worth about $175 million, wasn’t in the final agreement with Airbus, and whether their removal involved impropriety. India has been investigating the jet purchase  since 2010 and sent a team to Europe to question executives.

Last year in June, ED had grilled former Civil Aviation Minister Praful Patel in connection with aviation lobbiest Deepak Talwar case under the Prevention of Money Laundering Act (PMLA). Patel was summoned by the ED over his alleged involvement in awarding favourable air traffic rights to foreign airlines. Patel, who was the Civil Aviation Minister when the merger of Air India and Indian Airlines took place in 2006, had denied any wrongdoing.Separately, ED is probing the merger, purchase of 111 aircraft from Boeing and Airbus at Rs 70,000 crore, ceding of profitable routes among other charges.