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May 25, 2001
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CBI told to probe allegations against Mascrenhas

The Central Bureau of Investigation on Friday received a formal request from the government to probe into allegations of corruption and irregularities against the suspended managing director of Air-India Michael P Mascrenhas.

"The request was received from the ministry of civil aviation and the agency was scrutinising it," a spokesman said in New Delhi this evening.

Various departments of CBI would examine the available material to decide whether there was a prima facie case against the person, he said.

Mascrenhas and another top official were suspended on May 23 on charges of corruption and irregularities.

While suspending Mascrenhas, a veteran with 34 years in the airline, the government had asked the CBI to thoroughly enquire into allegations against him pertaining to "undue favours" shown to Air-India's general sales agent in London.

The action against Mascrenhas and the other official followed reports by the ministry's chief vigilance officer and joint secretary alleging "overpayment of Rs 570 million to the London GSA which was detected by the Comptroller and Auditor General of India.

Reacting to the government's action, the suspended MD of Air-India had said that his suspension was 'motivated and malafide' and that he was seeking legal opinion to challenge it in the court.

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