Business
AI-SATS formed under UPA is in ‘confirmed’ list of shell firms
Updated : Sep 21, 2017, 06:30 AM IST
The war against black money has touched the ailing national carrier Air India. The Central Bureau of Investigation, while scrutinising a ground-handling joint venture of Air India named SATS Airport Services Private Limited (AI-SATS), has traced certain unusual business activities and has included it in a 'Confirmed List' of shell companies.
The Financial Intelligence Unit of the Union Ministry of Finance, a specialised unit that monitors suspicious cash transactions, has been forwarded this 'Confirmed List' — adding up to 16,794 entities, including AI-SATS.
Finance ministry sources told DNA that there were "four instances of cash deposits through PAN associated with AI-SATS during demonetisation". In the set of alleged 'confirmed' shell companies list, 14,246 have been identified by the I-T department, 2,015 by SFIO, the CBI has named 482 (including AI-SATS) and ED 51 companies.
This list has been updated with PAN records data as on June 1, 2017.
AI-SATS is a 50:50 JV between Air India Limited and Singapore Airport Terminal Services (now known as SATS Ltd) formed in 2010, when the UPA government was in power. It provides ground-handling services across airports in Delhi, Hyderabad, Trivandrum and Banguluru. AI-SATS had been in mired in controversy since its formation over allegations that it caused huge losses to the national exchequer. Air Corporations Employees' Union, in a letter to the chairman of the parliamentary standing committee on transport, tourism and culture, alleged that while SATS was supposed to invest Rs 400 crores, hardly a fraction of the amount actually came in. "We were further told that due to this alliance, latest technology and equipment of world-class shall be made available by the SATS to Air India, whereas no such technology comes to Air India. The concept of forming a joint venture company has therefore failed."
The Union demanded scrapping of "this unviable, uneconomical, loss-making JV".
During the UPA regime, the civil aviation ministry had come out with a new ground-handling policy under which all greenfield airports in India were to be handled by joint ventures only. Private airlines were not included in this policy.