CBI books ex-AAI chairman for corruption in contract for food and beverage operator at airports
New Delhi (PTI): The CBI has registered a corruption case against former Airports Authority of India (AAI) chairman V P Agarwal for allegedly favouring a consortium of airport-lounge operators and a company that runs popular fast-food chains across the country in the contract for operating food and beverage services at the Chennai and Kolkata airports in 2012-13.
After three years of a preliminary enquiry into allegations of "cheating and gross misconduct", the Central Bureau of Investigation (CBI) has also booked then Member (Finance) S Suresh, then Executive Director R Bhandari, lounge operators Travel Food Services Chennai Private Limited and Travel Food Services Kolkata Private Limited, and Devyani International Limited, which runs several fast-food chains in India.
The questions sent to the companies remained unanswered.
The case concerns tenders for the master concessionaire contract for food and beverage services at the Chennai and Kolkata airports in 2012-13, officials said on Friday.
It is alleged that senior AAI officials engaged in gross misconduct, manipulated the tender process and made unauthorised changes to the terms and conditions of the master concessionaire contract in 2012-13 to favour the private parties.
The AAI had appointed IL&FS Infrastructure Development Corporation Limited (IIDC) as its consultant in August 2011 to help enhance non-aeronautical revenue, including earnings from food and beverage outlets, retail shops, advertising and car parking, at the Chennai and Kolkata airports.
Under the proposed master concessionaire model, a single agency would be awarded the contract to develop, operate and maintain all food and beverage outlets at each airport for 10 years to boost non-aeronautical revenue.
The CBI launched the enquiry in 2022 and submitted an extensive report material, suggesting cheating and a criminal conspiracy by public servants to extend undue benefits to private entities, prompting the agency to convert the enquiry into a formal case by filing an FIR.
The tender was a two-stage process. The first one was the Request for Qualification (RFQ) stage, with the shortlisted bidders moving to the finance stage in Request for Proposal (RFP).
According to the CBI, key terms in the RFQ were altered and conditions tweaked to favour certain companies at the RFP stage, and the minimum annual guarantee (MAG) was lowered and collusive bidding done by the two shortlisted bidders, who allegedly had conflicting interests.
The then Executive Director of the AAI, A K Mishra, had raised concerns about the collusive bidding and recommended recalling the tender with revised eligibility norms.
"However, the said apprehension was ignored deliberately by the accused public servants," the FIR says.
The FIR mentions the role of Amit Arora, who is under investigation in the Delhi excise policy case. However, he has not been named as an accused in this case.
"Amit Arora was also one of the prospective bidders at RFQ stage. On May 29, 2013, Amit Arora joined as Director of Devyani Airport Services (Mumbai) Pvt. Ltd, a subsidiary of Devyani International Ltd.
"The entity, Devyani Airport Services (Mumbai) Pvt. Ltd, was incorporated on April 18, 2013. Amit Arora got associated with one of the bidders, Devyani International Ltd, after RFQ stage but prior to RFP stage," the FIR has alleged.
The second shortlisted bidder was a consortium of Travel Food Services Private Limited and its subsidiary, Authentic Restaurants Private Limited.
"Amit Arora acquired 99.99 per cent shares of Authentic Restaurants Pvt. Ltd and had also joined it as Additional Director," the FIR has alleged.
The CBI said the bids of the two shortlisted contenders were "nearly same and just higher than the mandatory minimum annual guarantee", with the consortium emerging as the H-1 bidder.
The enquiry found that Arora had direct and indirect interests in both bidders, which should have led to their disqualification.
"But, the Master Concessionaire Contracts were awarded to newly formed companies ... and the shareholders in both the companies who participated in the bidding process were same," the agency said.
According to the FIR, the bidders failed to inform the AAI about the changes in the ownership and shareholding, violating the undertakings submitted at the RFQ stage and creating a conflict of interest.
The enquiry showed that the Commercial Advisory Board (CAB) of the AAI was given three separate options for fixing the MAG for the Kolkata and Chennai airports, but it chose the lowest of the three options for both airports.
"Enquiry revealed that MAG was to be decided in a rational manner to achieve
optimum revenue for AAI. However, the accused public servant, in criminal conspiracy with private persons, deliberately and in order to facilitate undue benefits, ignored the opinion of consultant and opted for much lower amount," the CBI has said.
All these changes helped the consortium of Travel Food Services Private Limited and Authentic Restaurants Private Limited, and Devyani International Limited to emerge as shortlisted and the only bidders at the RFQ stage for both airports.
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Kharge calls NDA ‘opportunist alliance thriving on corruption’ at rally
Puducherry (PTI): Senior Congress leader Mallikarjun Kharge on Saturday said the NDA "is an opportunist alliance that thrives on corruption and the looting of public assets".
Addressing a rally of the INDIA bloc in Puducherry, the Congress president said Prime Minister Narendra Modi "had done nothing" for the union territory’s development.
He urged voters to back the INDIA bloc in the April 9 Assembly polls, calling it "an opportunity for the people to fight against divisive forces led by the BJP and RSS, which are destroying unity, harmony, and the progressive spirit of Puducherry."
Kharge also criticised the BJP for neglecting smaller states like Puducherry and made a strong case for granting it statehood, promising, "Congress will secure statehood—this is a guarantee we give to the people here".
He alleged that under the current AINRC-BJP coalition, Puducherry is "riddled with corruption and a 30 per cent commission system," with the NDA government exploiting the union territory, despite it being "one of the country’s most beautiful places".
He expressed concern over "misuse of funds and stalled development", alleging corruption had "seeped into every sector".
Kharge claimed that despite Prime Minister Modi’s zero-tolerance stance on corruption, "everything in practice is being handed to one person, Adani—from land to skies."
He added that the NDA was "exploiting land, temple lands, and public property."
The Congress leader also criticised the AINRC-BJP rule for granting permits for around 450 liquor shops and restaurants over the last five years, claiming, "Instead of providing clean water, the government has been giving liquor to the people."
Kharge compared the current situation with the previous Congress rule, highlighting development across sectors, particularly healthcare. "Hospitals were established here to take care of the health of the people," he said.
Among his promises, Kharge pledged "gold for mangala sutra" for women if Congress is elected, along with free education from primary school to research level.
He reiterated that Prime Minister Narendra Modi’s promises to Puducherry had not materialised and renewed his call for full statehood, citing the lack of powers as a "hindrance" to the elected government.
He recalled that during the previous Congress rule, then Chief Minister V Narayanasamy, who was also present, faced interference from then Lt Governor Kiran Bedi.
Kharge said Congress has always stood with the people and would continue to improve their lives through developmental programmes, as it had during earlier administrations.
The meeting was presided over by Puducherry PCC president V Vaithilingam, and among the speakers was S P Sivakumar of the DMK.
