5 August 2000

From Jal Khambata

NEW DELHI: R C A Jain, a retired IAS officer of the Madhya Pradesh cadre, is being appointed  the new chairman of the Government-run Air India, ignoring a Central Vigilance Commissioner's pending inquiry against him for alleged misappropriation of Rs 300 crores during his tenure as the Union Coal Secretary and Chairman of the Nevelli Lignite Corporation, a public sector undertaking.

A formal announcement of his appointment is expected in a day or two. The Cabinet Committee on Appointments (CCA) had cleared his name and Prime Minister Atal Bihari Vajpayee signed papers for his appointment on Saturday.

He will be succeeding Ravindra Gupta, who was made the ex-officio chairman of the international air carrier in his capacity as the Civil Aviation Secretary and who continues to hold the post even after his transfer as the Secretary, Defence Production since the chairman's post cannot be kept vacant.

Jain's selection was reportedly prompted because of his close proximity to RSS chief K Sudarshan. Geting a tip-off of his impending appointment, Gupta is understood to have shot off a letter to the Prime Minister's Office (PMO) pointing out that Jain was still under the shadow of the inquiry for alleged misappropriation.

For quite some time, the Government was combining the post of the Civil Aviation Secretary and the Air India chairman, but this was found to create difficulties whenever the incumbent had to be transferred. Gupta continued so far after his exit from the Civil Aviation Ministry only because the new chairman could not be appointed and the same had been the case of P V Jayakrishnan who had continued as the Air India chairman for quite some time after his transfer as Secretary, Information Technology. END