CBI Files Charge Sheet Against Former Air India CMD and Tech Giants in Software Procurement Scandal

Central Bureau of Investigation (CBI) has lodged a charge sheet against the former Chief Managing Director (CMD) of Air India, Arvind Jadhav, along with IBM India Private Limited, SAP India Private Limited, and six others. The case revolves around alleged irregularities in the procurement of software amounting to ₹225 crore by the national carrier in 2011.

The CBI initiated the case based on recommendations from the Central Vigilance Commission (CVC), which had identified procedural irregularities in the software procurement process. After an extensive six-year investigation, the charge sheet has been filed under the IPC section 120-B (criminal conspiracy) and relevant provisions of the Prevention of Corruption Act.

The CVC noted in its communication to the CBI that an initial inquiry by Air India's chief vigilance officer revealed that the airline selected the Enterprise Resource Planning (ERP) software system from SAP AG without adhering to proper tendering procedures. Furthermore, it was alleged that there was no approval from the civil aviation ministry, despite claims by Air India that presentations were made before the Group of Secretaries in 2009 and the Group of Ministers in 2010.

The commission contended that Air India opted for the software from the world's largest ERP provider, SAP, without adequately justifying the necessity for it, given that a similar Oracle system was already in operation. While the Oracle system had some issues, no efforts were reportedly made to rectify or upgrade it. Additionally, the procurement of the new ERP software lacked an open tender system, with the contract being awarded to SAP and IBM on a nomination basis.

This charge sheet marks a crucial development in a long-standing investigation into alleged improprieties in Air India's software procurement process, involving top executives and renowned technology firms.