CVC looking into BJP MP's complaint on Jet-Etihad deal

The Central Vigilance Commission (CVC) is looking into a complaint of alleged corruption in the Rs 2,058-crore deal between Jet Airways and and Abu Dhabi's Etihad Airways.

The complaint, which was sent to the CVC by BJP MP Nishikant Dubey last month, alleged a serious fraud to cheat the Government of India and cause huge loss of revenue of Rs 500 crore to the national exchequer by Jet Airways in collusion with senior officials and higher ups in Ministry of Civil Aviation.

The CVC has received the complaint and it was being looked into, official sources said.

The multi-crore agreement between the two aviation industry majors has been in controversy ever since it became public, with opposition BJP claiming "something fishy in the deal".

Etihad had on April 24 announced its decision to purchase 24 per cent stake in Jet for Rs 2,058 crore. On June 13, the Foreign Investment Promotion Board (FIPB) deferred a decision on the deal, saying it required more clarity on control and ownership structure of Jet Airways. Jet chairman Naresh Goyal owns a 51 per cent stake in the airline.

Besides FIPB, capital market regulator SEBI, fair trade watchdog Competition Commission and Department of Industrial Policy and Promotion have also raised certain queries.

The deal is the largest foreign investment proposal in the aviation sector.

Dubey had last week also written to Prime Minister Manmohan Singh, with copies to CBI, CVC and Cabinet Secretary Ajit Seth, alleging "strategic conspiracy" by some elements to get the deal approved.

Responding to Opposition's allegation, the Prime Minister's Office had last week said the stake sale matter was still under examination and the issues raised have been referred to various concerned ministries.