Allegations flying, appointment grounded

Civil aviation minister Praful Patel has put the appointment of the AAI's member finance on hold after learning that the CVC okayed it without fully probing the official’s vigilance track record

By Shahid Faridi

The Central Vigilance Commission (CVC) rushed to give vigilance clearance to NALCO finance director S C Chhatwal without waiting for the report of the ITDC chief vigilance officer (CVO) Alok Saxena—which is a damning document. Chhatwal was all set to take up the sensitive job of director finance, Airport Authority of India (AAI), after getting clearances from the ministry of personnel and the Prime Minister’s Office.

But his detractors struck just as civil aviation minister Praful Patel was about to sign his appointment letter. After Patel was shown the ITDC CVO's letter, Chhatwal's file was returned to the department of personnel for a case review.

This latest row that is now engulfing the AAI comes quick on the heels of the controversy over the government's decision to privatise the Delhi and Mumbai airports.

The Public Enterprises Selection Board (PESB) selected Chhatwal as the replacement for AAI member (finance) V D V Prasad Rao, who is close to retirement. Following the PESB clearance, Chhatwal's file was sent to the CVC, which was asked to look at his vigilance record for the past 10 years during which the official had worked for three organisations—Rail India Technical and Economic Services (RITES), NALCO and ITDC.

The CVC examined Chattwal's vigilance record at RITES and NALCO and gave him a clean chit—without probing his stint at the ITDC. Chhatwal's candidature was approved on December 2, 2005—three days before the report of ITDC CVO reached Satarkata Bhawan. The 10-page report details various improprieties that Chhatwal allegedly committed.

The ITDC CVO's report is in the format sought by the CVC and answers specified questions. Answering the query about whether Chhatwal was at any stage placed on the “Agreed List”, or list of officers of doubtful integrity, Saxena wrote: “The name of Chhatwal has been placed in list B of the Agreed List in 1997 and list C of the Agreed List in 1999.”

To the question about whether any allegations of misconduct were examined against him in the past 10 years, the report pointed to a complaint which was filed by H C Chawla on behalf of the All India ITDC Employees’ Union on June 10, 1994, alleging that Chhatwal had shared his house with two more families and claimed rent reimbursement against the norms.

Another complaint, dated November 27, 1996, from the general secretary of the All-India ITDC Majdoor Janta Union said that Chhatwal was instrumental in letting out the Convention Hall of Ashok Hotel, New Delhi, to one Gulati in January 1996 on a daily charge of Rs 2 lakh, whereas Rs 4 lakh a day should have been charged.

The ITDC CVO's report, however, added that the allegations had not been substantiated in the investigations conducted by the Vigilance Division.

In yet another case, when Chhatwal was head of the Material Management and Development Division, he was charged with favouring the Bakshi Trading Corporation in some purchase deals. In a letter dated July 6, 1998, the Central Bureau of Investigation (CBI) noted that in the purchase of crockery and cutlery, Chhatwal should have approved the recommendations of the purchase committee, which he did not. Thus, according to the CBI, he had acted with impropriety, overruling the recommendations and ordering purchases from a party on the specious ground that it was a new entrant.

The CVO report contains more such cases. When asked whether Chhatwal was ever punished in those 10 years, Saxena replied: “We have no information in this regard.” Chhatwal was, however, found guilty of shielding officers who had committed gross improprieties in the purchase of computers. An ITDC vigilance department probe found that one party was favoured. When the chief vigilance officer recommended action against the officers involved, Chhatwal rejected the recommendation, saying simply that there was no case. But when the case was submitted to the corporation's chairman and managing director, the recommendations were accepted and action was ordered against the guilty officers.

The ITDC CVO's report against Chhatwal has come as a godsend for top AAI officials who are desperate to prevent the “outsider” from taking the key post in the organisation.

The Public Enterprises Selection Board, which selected Chhatwal as the leading candidate for the post, had kept a general manager from the AAI's commercial department at number two in the two-member selected panel. A lobby in the AAI is keen to have him elevated to member (finance).
With Praful Patel sending Chhatwal's file back to the personnel ministry for a relook, and the possibility looming of a general manager superseding several AAI executive directors, there is now also frenzied lobbying for fresh interviews in case Chhatwal's appointment is rejected.

With allegations flying, and the appointment, for the moment, grounded, all eyes are now glued to the ministers for personnel and civil aviation.