DGCA under scanner over plane imports

NEW DELHI: The Directorate General of Civil Aviation (DGCA) has come under the scanner of Customs department investigating the aircraft scam. Irregularities have been detected in the issue of licences to some private airlines belonging to the country's top corporate houses for the import of aircraft under the duty waiver scheme. Like the car import scam unearthed by the Directorate of Revenue Intelligence in 2005, hundreds of private jets were imported into the country under the Non-Scheduled Operator, Passenger (NSOP) scheme that provides for availability of these aircraft to general public for non-scheduled and charter flights. Import under NSOP category entitles a private airline to avail duty exemption up to 25% of the cost of aircraft. However, the probe has revealed that some private airlines had deployed the aircraft imported under NSOP scheme for personal use. Already 70 operators who had imported about 200-odd aircraft in the last two years are being looked into. Sources said in some cases, it was found that DGCA had cleared an NSOP licence despite the fact that the private airline already had a licence under "private" category from the Directorate General of Foreign Trade. The customs department is investigating whether rules were bypassed to issue a second licence for the import of the same aircraft. One case currently being investigated is that of JSW Steel, a company of the O P Jindal group which had applied for two licences for import of a Bombardier Challenger 300 and had got NoCs for both. The first licence was obtained by the company from DGFT, Bangalore, on June 15, 2007, for "private" use of the aircraft. However, when the customs department issued a notification regarding the duty exemption under NSOP scheme, the Jindal group company approached the civil aviation ministry for NSOP permit on November 20, 2007, for the same Bombardier Challenger 300. The DGCA on February 4, 2008, on the direction of the civil aviation ministry, issued NoC for an NSOP licence to the Jindal group company despite the fact that the private airline already had a licence from DGFT Bangalore for import of the same aircraft under "private" category. JSW, however, denied any irregularity. In a statement, the company said, "The group has not evaded any customs duty on import of aircraft. The Rs 19 crore duty paid is towards the Bombardier Challenger 300 aircraft imported for private use."
source:TOI