The former Civil Aviation Minister, Mr Praful Patel, said that in 2005 the Ministry did request the Comptroller and Auditor General (CAG) and the Central Vigilance Commission (CVC) to evaluate the proposal of acquisition of aircraft by Air India. However, there was no reply from either the CAG or CVC, he claimed. Mr Patel was the Civil Aviation Minister from 2004 to early 2011.
Commenting on the CAG report questioning the decision relating with 50 aircraft purchase, Mr Patel, who is currently Heavy Industries Minister, said, “Even before the project was sent to the Public Investment Board for its approval, the matter was referred to the CAG and CVC.” The PIB nod is necessary for any Government expenditure over a stipulated amount.
The government auditor has termed the acquisition ‘risky.'
On May 6, 2005, the then Secretary Civil Aviation, Mr Ajay Prasad, wrote saying “while acknowledging that the extant procedure envisages a role for the CAG and the CVC only after the investment decisions are taken and implemented, the Ministry shares the view of the board of Air India that it would be appropriate to furnish the entire set of documents for their perusal.”
Meanwhile, the NDA Government's Civil Aviation Minister, Mr Rajiv Pratap Rudy, claimed that merger and acquisition of the aircraft resulted in financial mismanagement of approximately Rs 78,000 crore. “After all this amount should be compensated from the government exchequer. Somebody should be accountable for that,” he added.
Mr Patel succeeded Mr Rudy as the Minister for Civil Aviation.