Air India leasing case: CBI court notes closure report, issues notice

A Special CBI Court at Rouse Avenue has taken note of a closure report filed by the Central Bureau of Investigation in a case concerning alleged irregularities in aircraft leasing by Air India and officials of the Ministry of Civil Aviation. The court has issued notice to the Centre for Public Interest Litigation, the complainant, and will consider the report on March 12, 2026.

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Case Background and Allegations

The case stems from an FIR registered on May 29, 2017, following directions of the Supreme Court of India to examine allegations raised in a public interest petition regarding aircraft leasing decisions taken when Praful Patel headed the civil aviation ministry. In 2024, the CBI filed the closure report in one of four cases linked to leasing contracts involving the then state-run airline. The probe examined alleged irregularities and misuse of official position in the leasing of aircraft, and several officials of the civil aviation ministry and Air India were investigated.

The FIR alleged that in 2006, officials in the civil aviation ministry and National Aviation Corporation of India Ltd (NACIL) decided to opt for dry and wet leasing of aircraft in conspiracy with private parties, without proper route study, marketing analysis, or pricing strategy.

It is alleged that Air India dry-leased four Boeing 777 aircraft for five years starting in 2006, even though delivery of its own aircraft was expected from July 2007. As a result, five Boeing 777s and five Boeing 737s reportedly remained idle between 2007 and 2009, causing an estimated loss of about ₹840 crore.

Although Praful Patel was not named as an accused, the FIR claimed that a large number of aircraft were leased by Air India, and NACIL was formed after the merger of Air India and Indian Airlines, despite very low passenger load factors. Lease agreements allegedly lacked early termination clauses, making cancellation costly and resulting in significant financial losses for the airline. The FIR further alleged that officials leased 15 expensive aircraft even though trained pilots were not available. It stated that both airline management and the ministry were aware of this. Later, when Air India and Indian Airlines began incurring losses, a sale-and-lease-back scheme was introduced in 2007 at the ministry's instance.

CBI Investigation Findings

After investigation, the CBI concluded that no criminal offence or conspiracy could be established against any public servant or private entity. It said the required criminal intent to constitute offences under corruption and cheating laws was not found. The agency has requested the court to accept the closure report and allow the return of seized documents to the concerned departments and parties.

Next Steps in Court

Since the Centre for Public Interest Litigation is the de facto complainant, the court has issued notice to it and listed the matter for March 12, 2026. The court will decide whether to accept the closure report after hearing the complainant. (ANI)