He had argued that the CAG has been a ?primary cause of widespread and paralyzing unwillingness? for government machineries to decide and to act. Auditing, Appleby had contended was leaving a repressive and negative influence. The three latest reports by team of government auditors headed by Vinod Rai including on coal block allocation and Indira Gandhi International Airport in New Delhi had undoubtedly left the government red-faced.

While coal block report had given the lethal ammunition to the opposition to call for Prime Minister?s resignation; the report on IGI Airport only reflects yet again that fungus of nepotism and corruption has crossed all limits of greed in utter disregard to propriety and the rule of law. The principal victim of the report is former Civil Aviation minister Praful Patel, Sharad Pawar and NCP?s chief fund raiser, and who had narrowly survived the IPL cricket controversy in 2010. The IGI Airport report also relates to 2010.

Honesty is not one of the best known virtues of politicians. Praful Patel is after all a politician. But this time around, CAG report is a clear indictment on both Patel and his ministry. The auditor says it is ?constrained to observe? that the ministry of civil Aviation under Patel had allowed GMR company-headed Delhi International Airport Ltd (DIAL) to use prime land of 239.95 acres for commercial exploitation at a nominal fees of `31 lakh and a paltry sum of `100 per annum.  

CAG says INR130 was collected from every passenger as the security component in violation of bidding norms.

At the same time, mis-governance gets reflected in government?s own mirror (the official audit), that the ministry had allowed DIAL to levy a ?development fee? at the airport from passengers for the purpose of financing the cost of up-gradation, expansion or development of the airport.
The CAG report says that the current value of the land is around `24,000 crore.  

Curiously, the government had signed an agreement that ?DIAL shall be responsible for procuring and maintaining at its own cost all security systems and equipment (except arms and ammunition) as required by the Government of India or the Bureau of Civil Aviation Security or its designated nominees from time to time.?  
According to the agreement, the security component goes to the Airports Authority of India (AAI), while the facilitation part is handed over directly to DIAL.
The auditor?s calculation is that DIAL has got a brownfield airport in a city like New Delhi for a concession period of 30 years, extendable by another 30 on identical terms. This provides an ?unilateral and unfair advantage given to DIAL, which is detrimental to government interest.? DIAL also has got a potential earning capacity of `1,63,557 crore, says CAG; a contention, however, denied by the DIAL.

But when questioned on the issue, the civil aviation ministry told CAG that a need was felt by the government to upgrade the security equipment available at the airports to the best available internationally. ?Security being the sovereign responsibility of the state, it was considered by the government that the expenditure on the security equipment be met through the passenger service fee escrow account.?

DIAL had included the cost of security equipment like perimeter intrusion-detection system, patrolling tracks, etc. in the passenger service fee account. In fact, in what is seen as a measure to facilitate DIAL charge the passengers, in its order on April 16, 2010, the ministry under Patel stated that the entire cost of security equipment could be met from the passenger security fee.

Expectedly, in a statement, the GMR-led DIAL asserted it had ?not received any undue benefit from the government before, during or after the bidding process?.

GMR Group is undoubtedly billed as one of the fastest growing infrastructure enterprises in the country with company website announcing that it takes interests in Airports, Energy, Highways and Urban Infrastructure sectors.  

Honesty is not virtue of politicians. Praful Patel is after all a politician. Curiously, in June 2012, Prime Minister had included Patel in the Group of Ministers (GoM) to tackle corruption.

Employing the Public Private Partnership model, the Group has successfully implemented several iconic infrastructure projects in India. The Group also has a global presence with infrastructure operating assets in Turkey, South Africa, Indonesia, Singapore and the Maldives,? said one insider.  

CAG reports reveal that `130 was collected from every passenger as the security component of the services fee, which was to be deposited in an escrow account for meeting the expenses related to the Central Industrial Security Force, which handles the security at the airport.

The auditors also found that DIAL had made ?irregular withdrawals? to the tune of `26.05 crore from the passenger service fee escrow account for payments to private security agencies. The nexus speaks out in itself as the CAG has also rapped the Airport Authority of India for going soft on the GMR Group over the delay in payment of retirement dues to AAI employees who did not want to work with DIAL.

Other findings include diversion of `239.69 crore by DIAL, collected from passengers as service fee, to purchase security equipment which should have been bought with the company?s own funds.

The CAG also concluded that the order of the ministry permitting DIAL to finance this equipment from the passenger service fee ?resulted in granting financial benefit of `239.69 crore to DIAL?. Vinod Rai?s team says the ministry and the state exchequer ultimately has suffered a loss at about `3750 crore. Sadly for aviation sector in the country and hapless passengers, the charging of fees was in violation of the bidding process, the CAG pointed out.

Thankfully for Patel, the timing of placing the report coincides with coal block allocation scandal and thus the focus so far is only on the coal ministry and the demand for resignation of

DAIL has got a brownfield airport for 60 years with a potential earning capacity of INR1,63,557 crore.

the Prime Minister. But BJP sources say the table will be turned against Patel too.

On his part, the present Civil Aviation minister Ajit Singh has played it safe.  

Without committing much on whether his illustrious Praful Patel could be defended or not, Ajit Singh told Eastern Panorama, ?as per norm the CAG report has to go to the Public Accounts Committee. Till the parliamentary examines it, how can I comment? It is not for us to accept the CAG report or reject it?.

He further explained only after PAC reports come, the government can apply mind.

Left on the defensive, the Congress has resorted to old game of finding fault with CAG itself. The party spokesman Manish Tewari said, the CAG has developed a bad habit of ?adding zeros? to its assumption of losses. ?It is a case of crossing the boundaries,? he said. His views were endorsed by V Nayanasamy, the union MoS in Prime Minister?s Office (PMO) readily.

The auditors said DIAL made "irregular withdrawals" to the tune of INR26.05 crore from the oassenger service fee escrow account.

On its part, Praful Patel?s own party NCP is not really forthcoming in defending the party leader. On the other hand, the Civil Aviation Ministry maintained that the (CAG) has simply added the nominal value of the projected revenue, without taking the net present value. ?In fact the net present value of the figure quoted by CAG is `13,795 crores only. CAG has further failed to appreciate that 46 per cent of this amount would be payable to AAI as revenue share,? it said.

Besides raising the technicalities, the ministry claimed its views and that of Airport Authority of India (AAI) had not been incorporated in the CAG report.
In a case of both GMR and Aviation ministry still working in tandem, in its  communique DIAL issued a lengthy riposte to the various observations of CAG. The company said it was unrealistic to come up with figures for the commercial value of land. ?The entire commercial land available with DIAL neither has any immediate commercial value nor can be put to use and therefore cannot be monetized immediately,? the company said.

It dismissed CAG report saying it was at best an arithmetic exercise and not practical.

By Swati Deb