3 DGCA staff suspended for causing loss to AAI

New Delhi: Government on Friday ordered suspension of a top officer of aviation regulator DGCA and two other staffers on charges of causing a loss of Rs 190 crore to the public exchequer by granting undue concessions to 28 flying

schools across the country.

Civil Aviation Minister Ajit Singh, who reviewed the case relating to granting of concessions to the flying schools in 2007 that was probed by the Central Vigilance Commission, ordered suspension of DGCA's Joint Director General AK Saran (then Deputy DG), and two other junior staff members -- Parveen Kumar and Assistant DS Sada, official sources said.

The minister has also ordered action against Deepak Raina, in-charge of the department dealing with the flying schools who has since retired, if conduct rules permitted, they said.

The Airports Authority of India (AAI) have also been directed by Singh to take steps to recover Rs 190 crore from these flying clubs.

The sources said the minister accepted some of the recommendations made by the CVC in its report sent earlier this week, which is understood to have said that these flying clubs have caused a pecuniary loss of Rs 190 crore to the public exchequer.

Under the Ministry rules, the flying schools are supposed to be registered as 'education societies' and run on 'no profit, no loss' basis. Only on that basis, these flying schools could avail of concessions by paying nominal charges

to the AAI.

However, the CVC probe found that all the 28 flying schools did not satisfy these criteria and only four of them were operating on a 'no profit, no loss' basis, they said.