Providing airspace to a money laundering state a serious Security issue – Dr Swamy

Serious national security issue, providing airspace to a moneylaundering state — Dr. Subramanian Swamy writes to PM to cancel India-UAE MoU

 Dear Prime Minister:                                                         May 30, 2013

                                 I write this letter on the subject of another developing mega fraud that also impinges on India€™s national security. This fraud is the so-called Jet Airways-Etihad deal, that has two components€”one of enabling Etihad to become entitled by a MoU executed on 24.04.2013 by the Governments of India and UAE [Abu Dhabi] on Bilateral Air Services vastly enhance Etihad€™s air traffic, measured by seat capacity, between the two countries. This arbitrarily determined  entitlement, tantamount to free provision of India€™s sovereign airspace to a foreign airline, hence fraught with serious national security issues, is patently for sweetening the private purchase of Jet Airway€™s substantial equity by Etihad.

                                      What is distressing is that the minuted Note signed by Finance Minister Mr. P. Chidambaram dated 22.04.2013 [Annexure 1] reveals that this rocket speed clearance of the deal is on your €œdirection€. The enclosed Note in Annexure 1, sanitized to delete file notings of officials and signatures [including of FM], is self explanatory.

                                      News media reveal that the inked deal on bilateral air space use is to be cleared by the Cabinet soon upon your return from Japan, and the Etihad equity purchase is to be put up and cleared by the FIPB and signed by the FM around 7.6.2013.

                                   My usually reliable sources abroad tell me that this deal if finally cleared and implemented would destroy Indian airline industry, particularly Air India, and empower a foreign airline and a nation known for money-laundering become a hub of India€™s passenger traffic.

                                   That is why the Parliament€™s Standing Committee  on Transport, Tourism and Culture in its Report submitted early this month on the Ministry of Civil Aviation€™s Demand for Grants (2013-14) stated [paras 77-94] that this Bilateral Agreement [now being processed for execution at an uncharacteristic and unprecedented pace], is reconsidered since in it is not in the national interest. The Committee has also recommended [para 94] penalization of Jet Airways for clandestinely selling its London route entitlement to Etihad even before the deal is sealed, and without informing the Government of India.

                                   Therefore if you do not order a comprehensive review of these two interlocking agreements i.e., [1] between GOI and UAE of use of air space for flights and seats offered and [2] purchase of Jet Airways equity, you will be directly responsible for an arbitrary and unreasonable deal in which windfall gains will be made by private and foreign parties at the cost of the nation and hence without any public interest.

                                   Prima facie, this would attract Section 13(1)(d) (iii) of the Prevention of Corruption Act (1988) and make you and some others culpable under the said Section.

                                   The common talk in UAE is that following the Supreme Court€™s cancellation of the 2G Spectrum licence of the Etisalat Telecom, which licence was illegally bought by them from Swan Telecom, the illegal beneficiaries from that deal who are highly placed in your government, have sought by this airlines€™ deal to mitigate formal and informal losses suffered by Etisalat and hence UAE. In this connection, the undue interest shown by the Chairperson of the National Advisory Council, Ms. Sonia alias Antonia Gandhi, in processing of these two agreements at rocket speed is worthy of notice in the national interest.

                                   If you decide to direct a review of these two aforesaid agreements, I shall happy to assist your government in the entire matter. Otherwise, aggrieved by your disregard of public interest I shall approach the Supreme Court by way of a Public Interest Litigation.

                                  Warm regards,
                                                                         Yours Sincerely

                                                                         Subramanian Swamy