- News>
- India
AI responsible for showing `undue favours` to GSA: Par panel
New Delhi, Apr 28: Holding Air India (AI) responsible for having extended `undue favours` to its general sales agent (GSA) in Britain causing a loss of over Rs 57 crore, a parliamentary panel has sought urgent steps to ensure the appointment of `most capable` consolidators there to protect the interests of the carrier.
New Delhi, Apr 28: Holding Air India (AI) responsible for having extended "undue favours" to its general sales agent (GSA) in Britain causing a loss of over Rs 57
crore, a parliamentary panel has sought urgent steps to ensure the appointment of "most capable" consolidators there to protect the interests of the carrier.
The committee on public undertakings, in a report tabled
in Parliament today, recommended that "urgent steps should be
taken to ensure appointment of more capable consolidators in
sufficient numbers in this territory so that commercial and
financial interests of Air India are protected".
The 22-member committee, headed by V K Malhotra, said the GSA, identified as welcome travels, was extended "undue favours by providing productivity-linked incentive (PLI) claims outside the terms of agreement during 1987-2000".
Pointing out that the GSA was not entitled for any remuneration for its sales in excess of normal commission, it said "the GSA was extended benefits in the guise of incentive in an undue manner by AI outside the terms of agreement".
It asserted "the very introduction of the PLI scheme is violative of the provisions of the general agreement entered into by AI with its GSA and is completely contradictory to the specific provision therein".
The committee said even after the audit had pointed out instances of excess payment, AI did not obtain any undertaking from the consolidators to repay any excess payments made to them. "This speaks volumes about the degree of carelessness on the part of Air India".
Bureau Report
The 22-member committee, headed by V K Malhotra, said the GSA, identified as welcome travels, was extended "undue favours by providing productivity-linked incentive (PLI) claims outside the terms of agreement during 1987-2000".
Pointing out that the GSA was not entitled for any remuneration for its sales in excess of normal commission, it said "the GSA was extended benefits in the guise of incentive in an undue manner by AI outside the terms of agreement".
It asserted "the very introduction of the PLI scheme is violative of the provisions of the general agreement entered into by AI with its GSA and is completely contradictory to the specific provision therein".
The committee said even after the audit had pointed out instances of excess payment, AI did not obtain any undertaking from the consolidators to repay any excess payments made to them. "This speaks volumes about the degree of carelessness on the part of Air India".
Bureau Report