Sinha, who handles airport-related matters in the Ministry, has been given additional charge of the post till a new Chairman is found, official sources said.
Agarwal, whose term ended in December, was asked to continue in the post from January one till further orders.
The sources said the Central Vigilance Commission (CVC) declined to allow him an extension. Agrawal, who still has one-and-a-half years of service left, had risen from the AAI ranks to become the Chairman.
Agrawal's sudden exit came at a time when the government was on a fast-track mode to privatise six airports, recently modernised by the AAI at a cost of several thousand crore rupees from the public exchequer.
Government had last September allowed private parties to pick up 100 per cent equity in operation and management of these airports at Chennai, Kolkata, Guwahati, Ahmedabad, Jaipur and Lucknow through public-private partnership.
This is being apparently done to conclude the privatisation process before the Model Code of Conduct for the general elections becomes effective.
The privatisation move has not only been opposed by AAI employees but also by the parliamentary Standing Committee on Transport, Tourism and Culture, headed by senior CPI(M) leader Sitaram Yechury.
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