A former chairman and managing director of Air India (AI, Delhi International) is among seven individuals and entities charged by India's Central Bureau of Investigation over "irregularities" concerning a INR2.25 billion rupee (USD27.1 million) software package acquired for the airline in 2011.
Arvind Jadhav, chairman and managing director of the then state-owned carrier between 2009 and 2011, is accused of selecting an enterprise resource planning software system from SAP India without a proper tendering process. SAP India and IBM India are also among the seven individuals and entities facing charges. The investigation, which has taken six years to reach this point, also alleges Jadhav and the other defendants claimed the software acquisition had the support of the Civil Aviation Ministry when that was not the case.
The charges rely on provisions in India's Prevention of Corruption Act and s.120-B (criminal conspiracy) of India's Penal Code. Jadhav's tenure in the top job at Air India ended suddenly when the government of the day decided to split the post into two and give each role to civil aviation ministry officials. At the time, Jadhav was under fire on multiple fronts over the state of Air India's finances. During his two years in the job, three significant strikes took place. Because of the airline's financial troubles, employees were experiencing difficulties with timely payment of salaries and allowances.
