Air Force Incurs Losses for Ferrying VIPs at Outdated Rates

An interesting turn of events concerning the Air Force, the Prime Minister and the Comptroller and Auditor General of India (CAG) but not involving the words ‘Reliance’ or ‘Rafale’ have raised questions concerning the use of VIP aircraft. Information received through applications under the Right to Information Act has revealed that the rates charged for using the Air Force’s VIP aircraft have not been updated since 1981. Interestingly, this has not been raised as an issue by the CAG in its audit report on the Air Force.

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Chapter II of the CAG report on the Air Force, for the year ending in March 2015, highlighted unrealised revenue and irregular procedure regarding VIP and Other Entitled Person’s (OEP) flights. The Air Force has three types of aircraft used for VIP flights, Boeing Business Jet (BBJ), Embraer, and Mi-8 helicopters. The CAG’s report suggests that there are 3 BBJ’s at the disposal of VIPs and OEPs. Previous CAG reports had noted that the reasons for acquiring a third BBJ aircraft were questionable. The same was noted in relation to the entire fleet of Embraer aircraft. Whatever the case may be, at present the two fleets exist, despite a shortfall in the total hours assigned for usage.

Unrealised Detention Charges

The CAG, however, noted that the detention charges were not realised from June 2012 onwards. Detention charges are charged on the total time, in excess of two hours, an aircraft is idle at an outstation. The hours are calculated by rounding off to the next hour. For example, if an aircraft is idle for two and a half hours then it will be counted as three hours and the charges will apply for one hour. The home location of all the fleets is in Palam, New Delhi. The detention rate charged is half the rate of flying hours. Between June 2012 and March 2015, the unrealised detention charges amounted to Rs. 32.35 crore.

The CAG found irregularities in authorising VIP flights of Senior Service Officers (SSO). The SSOs are included in the list of OEPs. The CAG found that 325 VIP flights were undertaken between 2012-2013 and 2014-2015. Out of these flights, 233 were taken by three Service Chiefs and 92 by SSOs. The CAG found that the mechanism for authorising these flights was absent and that the expenditure incurred on this account was to the tune of Rs. 24.23 crore.

The next issue highlighted by the CAG in relation to the VIP fleet concerned indemnity bonds. A part of the procedure for flying by the Indian Air Force’s VIP fleet is that all the passengers – except foreign dignitaries – have to sign an indemnity bond. The purpose of the bond is to waive the Air Force’s liability in the event of an accident, so that no claims for compensation can be made. The CAG noted that neither the indemnity bonds nor the passenger manifest was ever received by the Air Headquarter Communication Squadron.

At this stage, it is apparent that there were severe lapses in the procedure governing the VIP fleet.

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Response to the RTI  

On December 28, 2016, retired Commodore Lokesh Batra filed an application with the Directorate of Personal Services of the Air Force under the Right to Information (RTI) Act requesting information related to the Prime Minister’s international trips. On February 3, 2017, he received a response, however, not in the form he requested. The information revealed that the Prime Minister had undertaken nine international trips using the BBJ aircraft.

However, a seemingly innocuous issue emerged. The Indian Air Force confirmed that the Prime Minister travelled by a BBJ aircraft to Bhutan in June 2014. However, the Prime Minister’s website mentioned that it was via a chartered flight. The cost of the ‘chartered flight’ was also displayed as Rs. 2,45,27,465.

Commodore Batra filed a subsequent application under the Right to Information Act with the Principal Legal Advisor and Central Public Information Officer of the CAG on August 2, 2017. The information sought pertained to the audit criteria used in the CAG’s report on the Air Force. As well as the foreign trips undertaken by the Prime Minister and the expenses incurred.

On the 18th of the same month he received a response from the Office of the Principal Director of Audit in the Air Force. The response declined sharing the information with the explanation that the information should be sought from the Ministry of Defence or the Air Headquarters.

On September 8, 2017, he filed his first appeal against the decision of the Principal Director of Audit in the Air Force. The result was that the appellate authority on October 3 found the Principal Director’s reasoning to be sound and that the reply Commodore Batra received was adequate. He filed a second appeal in the Central Information Commission (CIC) on December 18, 2017. The CIC on July 9, 2018, ruled in his favour and directed that the CAG forward Commodore Batra’s application to the correct concerned departments.

On July 13, in pursuance of the CIC’s order, the Principal Director of Audit in the Air Force provided a copy of the Presidential Order of 1981 which lays down the procedure concerning the Air Force’s VIP fleet. The Principal Director of Audit also forwarded the original application to the Secretary (Defence and Finance) and to the Directorate of Personal Services at the Air Force Head Quarters.

According to the Presidential Order, the President, Vice President and the Prime Minister are all entitled to use the Air Force VIP aircraft without restrictions. Whereas, the Ministers of Defence and Home Affairs; the Minister of State in the Ministry of Defence; the Service Chiefs; Defence Secretary; other Ministers of the Central Government; Senior Services and Civilian Officers connected to the Defence Organisation; and the Cabinet Secretary are entitled to use the VIP aircraft, only if it is essential and an aircraft is available. The order also contained a caveat that the President, Vice President and the Prime Minister will make use of commercial air services for official duty whenever possible.

None of the officials mentioned will have to pay charges for using the aircraft for official duty. For persons otherwise not entitled to use the VIP aircraft, the rates are; Rs. 5,42,000 per flying hour for Boeing 737, Rs. 2,20,000 for AVRO (HS-748) and Rs. 1,97,000 for MI-8 helicopters. These charges do not apply to the personal staff accompanying the entitled persons. However, if non-entitled persons are travelling with the VIPs mentioned, then they will be charged on the basis of the first class rail fare if the two locations are connected by rail, the standard air fare if the locations are connected by air, or on the basis of rates determined by the Department of Accounts at the Air Force Headquarters.

Presidential Order not Updated since 1981

If we were to consider that this order was passed in 1981 and has not been changed since, the rates prescribed appear to be outdated. Another interesting point is that apart from the MI-8 helicopters, none of the other two aircraft have been mentioned in the CAG report concerning the VIP fleet. This would indicate that not only are the rates outdated, but the order had not taken into account the new aircraft inducted into the VIP fleet. In which case, what would be their rates? It is interesting that the CAG too did not raise such questions in their audit, despite referring to the Presidential Order to determine the unrealised revenue.

On August 8, 2018, the Principal Director of Audit for the Air Force forwarded a response from the Directorate of Personal Services at the Air Force Head Quarters, declining to furnish the remaining information to Commodore Batra largely on the basis of security concerns. The Department of Personal Services also mentioned that the Presidential Order states that the Prime Minister is exempt from paying for using the VIP fleet when on official duty.

However, two questions remain. Why did the CAG not question the government on updating at least the rates in the Presidential Order? If the Prime Minister did travel to Bhutan on a BBJ aircraft, on what basis did he incur charges of a little over Rs. 2 crore?