Former Air India Chief Embroiled in Corruption Scandal Over Software Purchase

In a significant development, Arvind Jadhav, the former Chairman and Managing Director of Air India, has been implicated in a corruption scandal involving the procurement of a software package worth INR 2.25 billion (approximately USD 27.1 million) in 2011. The Central Bureau of Investigation (CBI) of India has charged Jadhav alongside six other individuals and entities, including SAP India and IBM India, for alleged irregularities in the acquisition process of an enterprise resource planning (ERP) software system for the national carrier.

Jadhav, who led the airline from 2009 to 2011, is accused of bypassing the standard tendering procedure to select the ERP software from SAP India. The investigation, which spanned six years before reaching this stage, also suggests that Jadhav and his co-accused misrepresented the acquisition’s approval by claiming it had the support of the Civil Aviation Ministry, which was reportedly not the case.

The charges against the individuals and entities involved are based on violations of the Prevention of Corruption Act and Section 120-B (criminal conspiracy) of the Indian Penal Code. This controversy marks a significant chapter in the history of Air India, particularly during Jadhav’s leadership, which was abruptly ended by the government’s decision to split the chairman and managing director role, assigning each to different officials from the civil aviation ministry.

Jadhav’s tenure was already under scrutiny due to the financial instability of Air India, highlighted by three major strikes and delayed payments of salaries and allowances to employees. This latest scandal adds to the complexities surrounding the management and operational challenges faced by the airline during his administration. The allegations underscore ongoing concerns regarding governance and transparency in the procurement processes of major state-owned enterprises in India.