Estd. in 1980s, by well-known investigative journalist Vineet Narain. Kalchakra is brought out by professional journalists, who volantarily contribute in this mission.
Nidar, Nirbhik Aur Khoji
KALCHAKRA
Read Kalchakra on the go.... epaper.kalchakranews.in
New Delhi
16-30 April 2018
Rs. 10
In This Issue
New dimension to Jet Airways Scam Former Civil Aviation Secretaries
Ashok Chawla & Nasim Zaidi all set to join Board of Directors of Jet Airways Before issuing NOC, will DoPT examine the role of these bureaucrats for obvious Conflict of Interest ? How come MoCA and CBI are turning blind eye to all the scams of Jet Airways ?
Gujarat Government's Civil Aviation Department run by misleading successive CMs for past 18 yrs State exchequer's money is being syphoned off to private operators by Director Civil Aviation Capt. Ajay Chauhan Page 1
Kalchakra Impact: DGCA forced to issue notice to Airlines to remove Directors of foreign origin with Page 2 no security clearance DRI sweeping under the carpet Hawala operations of Jet Airways? Why DRI failed to charge-sheet air hostess of Jet Airways despite arresting her with USD worth Rs. 3.24 Crores Page 3
Relevance of Jain Hawala Case: First time in English the hair raising account of this crusade in its Silver Jubilee year of its exposure Page 4
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Ashok Chawla New Delhi, It is shocking and disturbing that despite ample documentary evidences filed by Kalchakra with the CBI, involving Jet Airways' several scams, no serious investigation has started yet. Here is an obvious case of 'conflict of interest' as these two former bureaucrats, who had worked in the Ministry of Civil Aviation as Secretary, are likely to join Jet Airways’ Board of Directors soon.
sukha-dukhhe same kritva labhalabhau jayajayau tato yuddhya yujyasva naivam papam avapsyasi
Nasim Zaidi The fact is that several scams of Jet Airways took place during their tenure in the MoCA. It is clear that they may have used official positions to unduly favour Jet Airways, which is paying back the possible favours. One may ask, was it not a disservice to the nation? To our knowledge, Hon’ble PM Narendra Modi has seen the previous issue of Kalchakra and must be aware of major scams of Jet
Airways. To ensure transparency in governance and to discourage such unscrupulous tendencies of retired bureaucrats, the PMO should turn down their request for an NOC to join Jet Airways till thorough investigation of their conduct and role in dealing with this controversial airline has been done by the CBI and other enforcement agencies.
Fight for the sake of duty, treating alike happiness and distress, loss and gain, victory and defeat. Fulfilling your responsibility in this way, you will never incur sin. Bhagvat Gita 2.38
Gujarat Govt's Civil Aviation Dept. run by misleading successive CMs for 18 years State exchequer's money is being syphoned off to pvt. operators by Capt. Ajay Chauhan and Gujarat Chief Minister. As per the DGCA directive under, Civil Aviation Requirements (CAR) Section 3 Air Transport Series C Part X, 'the aircrafts owned by State Governments and Public Sector Undertakings of the Central/State Governments are being increasingly used for carriage of Governors, Chief Ministers, State/Central Ministers, and other important high dignitaries. In order to ensure better safety oversight control on the operation of such aircraft, it has been decided
Rajneesh Kapur
Ahmedabad, Director Civil Aviation of Gujarat Govt., Capt. Ajay Chauhan is syphoning off govt. money to private operators in a scrupulous manner. He has kept successive CMs in dark for the past 18 years. Kalchakra's investigation has unearthed shocking facts of this scam. The norms and rules laid by the DGCA for operating State Air Carriers have been grossly violated during these years, which need immediate attention of the DGCA
Capt. Ajay Chauhan (extreme right)
Contd... On page 3
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Nidar, Nirbhik Aur Khoji Kalchakra 16-30 April 2018
Jet Airways' Capt. Ajay Singh cleared 66 files related to Jet Airways while serving as CFOI with DGCA under notice period In the last issue of Kalchakra, we had highlighted the ‘Conflict of Interest’ in DGCA vis a vis Jet Airways, where Jet had appointed its own people at key positions in DGCA. Jet Airways’ Capt. Ajay Singh was working as Chief Flight Operations Inspector (CFOI) with the DGCA, which is a Jt. Secy. level position. Interestingly, he was supposed to give clearance to pilots for flying aircrafts of various airlines including Jet Airways. As per the RTI reply from DGCA, Capt. Ajay Singh was appointed as CFOI on 5 Aug. 2014. He was working with Jet Airways prior to this assignment. He submitted his resignation from the post on 10 Aug. 2016, but was relieved from his post on 2 Feb. 2017 and subsequently re-joined Jet Airways. Our RTI further reveals that a total number of 66 files related to Jet Airways were cleared by him during Aug. 2016 and Feb. 2017 (notice period). We are given to understand that the appointment of a Jt. Secy. level post should
have been through UPSC. Will someone find out if Capt. Ajay Singh went through this process? Is anybody in the GoI concerned?
Airlines to lose operator's permit if Directors of foreign origin with no security clearance not removed immediately: DGCA As an impact of the matter taken up by matter was referred to the Ministry of Home Kalchakra regarding the security clearance Affairs. After the High Court's order dated 27 of Capt. Hameed Ali of Jet Airways, the July 2017, the MHA wrote to Kalchakra on 1 Ministry of Civil Aviation was forced to write September 2017 that the security clearance to all the airlines to abide by its letter dated was given to Capt. Hameed Ali on 25 July 23 March 2018. As per the letter (see box) 2014. This was certainly a clear violation of the airlines were told to remove all the the CAR. But the ministry and the DGCA Directors (foreign nationals) on took no punitive action against Jet their board, within 30 days, who Kalchakra’s Airways for this gross violation. How have been appointed without IMPACT could Jet Airways got away with such prior security clearance, failing serious which their aviation operations would be lapses on its suspended. part. Readers may recall that the violation of Subsequently, Capt. Hameed Ali COO/CEO, Jet Airways, Mr. Vinay Dube who is a Bahrain national, was raised by (US citizen), has Kalchakra. The matter which started from a been appointed RTI application went up to the Delhi High the new CEO of Court, which directed the ministry to ensure Jet Airways, on 9 the compliance. Aug 2017. We The letter points out that there have been presume this instances where airlines have appointed was done after directors on their boards ignoring the civil obtaining the aviation requirements (CAR), despite mandatory sensitising them from time to time. clearances? Jet Airways had appointed Capt. Hameed One has to wait DGCA’a letter Dt. 23 March 2018 Ali as its COO in 2007 and as per the RTI and watch for the next move of DGCA, reply, there was no information available whether it takes strict actions against airlines with the Ministry of Civil Aviation and the violating this rule or not?
Jet Airways Annual Report 2007 showing Hameed Ali as its COO
MHA’s letter dt. 1 Sep 2017 saying that Ali was granted security clearance in 2014
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Nidar, Nirbhik Aur Khoji Kalchakra 16-30 April 2018
Gujarat Civil Aviation Scam..... ...from page 1
such transactions have been done for almost all the aircrafts maintained at the GUJSAIL hangar.
that the concerned State Government/PSU shall obtain permission from DGCA for operating such aircraft.'
The list of such scams is very long, as a result Gujarat Govt. is constantly suffering major losses.
Based on the documents in our possession, it is learnt that Gujarat Government does not have Air Operators Permit (AOP) despite owning planes and helicopters for nearly two decades. On routine annual inspection by the DGCA, it is repeatedly told that the said permit has been applied for. Surprisingly, the DGCA has also not bothered to pressurize Gujarat Government to obtain the said permit despite the repeated lapse for so many years. Instead of having its own setup, the state carriers are operating by outsourcing the Operation & Maintenance (O&M) from private companies (such as M/s Aryan). The reason for this unconventional arrangement is to syphon off government money for private benefit. Capt. Ajay Chauhan, who is working as Director Civil Aviation of Govt. of Gujarat, also serves as Aryan's paid pilot. Hence, he is drawing two salaries from govt. and Aryan Aviation. The Gujarat govt. gives a contract amount to the maintenance agency for four pilots. Out of which one pilot is Capt. Ajay Chauhan. This is a clear case of conflict of interest. Out of the 4 pilots, Capt. Chauhan receives the highest amount of salary as a helicopter pilot, while he has the lowest experience. The structure itself is doubtful. It is obvious that while selecting the O&M Agency, Capt. Ajay Chauhan struck the above deal for his own benefit.
clandestine activities. One such company is Kasmc Aviation, which operates from Ahmedabad. Through this company, Capt. Chauhan routes the money from the Aviation Dept. of Gujarat govt. The company accounts seems to have received money from all the agencies having business with Aviation department of the Govt. of Gujarat like M/s Indamer Aviation Pvt. Ltd. etc. Interestingly, there are no employees on the roll of this company. Moreover, the bank account number 03268380000975 of the company with Yes Bank has Capt. Chauhan as the signatory.
Kasmc Aviation bills to M/s Indamer, which was earlier the O&M agency of both the aircrafts of Gujarat Govt. and for providing four pilots for Gujarat Govt's aircrafts. But, as per records, three of these pilots are on the payroll of Indamer. Whereas, Capt. Chauhan draws the salary of one pilot through Kasmc. The company accounts have been regularly transferring money to Mrs. Bobbie Chauhan, wife of Capt. Ajay Chauhan. Hence, the public money Capt. Chauhan has engaged shell is being smartly transferred into companies to camouflage his Chauhan's personal bank accounts.
Misuse of GUJSAIL Hangar Gujarat State Aviation Infrastructure Company Limited (GUJSAIL) Hangar situated at Ahmedabad Airport is a Maintenance, Repair and Overhaul (MRO) facility by the State government. GUJSAIL gives the hangar on rent to other operators for maintenance of their Aircraft. Capt. Chauhan has so manipulated that GUJSAIL charges only the parking charges and not for the other services provided to the clients, which obviously would be much higher. The difference of rates is syphoned off to Capt. Chauhan’s shell company Kasmc. The modus operandi can be understood with an example. Let’s say, Indian Air Force utilized the GUJSAIL hangar facility for major inspection of its four aircrafts. However, the servicing bill to IAF is given by M/s Indamer. Indamer in turn receives (fake) bills from Kasmc Aviation, owned by Capt. Chauhan, for providing the manpower, which actually is never provided. It is just a channel to transfer money to Chauhan’s pockets. The documents available with Kalchakra show that
The obvious reason for not obtaining DGCA's Air Operator's Permit, is to avoid govt’s scrutiny at every stage. Had this permit been obtained then Gujarat Govt. could have handled the entire Civil Aviation Dept. under its officials. This would not have given a free hand to Capt. Chauhan to manipulate in so many ways. In that case a senior and well qualified pilot, selected through a transparent method would have become the Director, Civil Aviation (Guj.) because even now Capt. Chauhan is much junior to the captains working under him. It calls for instant suspension of Capt. Chauhan and a fair investigation ordered by CM Gujarat into his corrupt practices. it would also be pertinent to find out if there are vested interests at the higher level which have provided shield to Chauhan. An immediate action required on the part of Gujarat Govt. is to immediately, obtain the AOP from DGCA. DGCA also owes an explanation for holding the permission for the past 18 years. It is shocking how MoCA (GoI) and DGCA are making mockery of civil aviation in India and its top brass are eyeing for plum posts after retirement with the air carrier companies. Kalchakra will continue to unearth more such scams.
DRI sweeping under the carpet Hawala operations of Jet Airways? Why DRI failed to charge-sheet air hostess of Jet Airways despite arresting her with USD worth Rs. 3.24 Crores New Delhi, The cover up of Jet Airways scams is going on unabated despite continued serious alleged crimes by its management and staff members. Recently, an airhostess of Jet Airways Deveshi Kulshreshtha was caught red-handed with foreign currency worth Rs. 3.24 Crores on board by the DRI. It is surprising that the DRI failed to file a complaint within a period of 60 days against Deveshi Kulshreshtha. During her interrogation, Kulshreshtha had revealed the details of other crew members of Jet Airways, who were also working on the behest of the main accused, but no action was taken against them, why? It is obvious that Jet Airways has a 'good liaison' with the investigating agencies too, that is why the lapse. Is it not disturbing that on one side the Government of India
blames Hawala operations for funding militancy in India and in Kashmir particularly, and on the other hand its top investigating agencies continue to shield these operators. We had similar experience from 1993 to 1998 when we were chasing Jain Hawala case. If this is the attitude towards such a serious crime then why do we blame our neighbours and militant organisations for causing violence and destruction in India, while we have no enthusiasm in investigating and controlling their channels of clandestine funding. Kalchakra has filed several
documents with the CBI substantiating our allegations of serious Hawala operations by Jet Airways, yet none seems to be bothered to investigate and punish the guilty. Are we living in a banana republic where Naresh Goyal (CMD, Jet Airways) can easily get away by committing repeated alleged illegal acts and by benefitting the who's who in governance? It is a very serious matter endangering the security and economy of the nation and lives of millions of air travellers. It should concern every patriotic Indian, experts of civil aviation, MPs, Judiciary and media persons that with such baggage of
criminal acts, Jet Airways has also its hat to buy Air India. Is anybody listening? If a honest investigation is done of the conduct of the Min. of Civil Aviation and the DGCA, vis-avis Jet Airways and Air India, it will be amply clear that with criminal connivance of senior officials and some of the successive Civil Aviation Ministers, calculated murder of Air India and Indian Airlines was done at the behest of Jet Airways to make it bankrupt and non-operational so that subsequently the pride possession of India is sold dirt cheap to Naresh Goyal and his cartel. This is another case of cheating the people of India whose hard earned money is being robbed off by scam masters like Naresh Goyal, Vijay Mallya and Nirav Modi types.
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Nidar, Nirbhik Aur Khoji Kalchakra 16-30 April 2018 1993 - 2018
Corruption,Terrorism and Hawala Ops The untold story of Jain Hawala Case What is the relevance of Jain Hawala Case in current times? This series answers some of the pertaining following questionsWhy 'Vineet Narain' judgement of Supreme Court is quoted in every case of high level corruption? This case exposed the nexus of militants, bureaucrats and politicians with Hawala operators yet why no proper investigation has been done so far? In this scam, 115 top people including Union Cabinet Ministers, Chief Ministers, Governors, MPs and bureaucrats were chargesheeted for corruption for the first time in Indian history, yet why no political party ever demanded honest probe into this scam, endangering the security of the nation, while on every other scam enough noise is made? Why the then Chief Justice of India, after revealing “persistent pressure by a gentleman” to hush up this case, did not punish him for contempt? In 1993, in the age of no private TV channel, no social media or sms facility, when journalist Vineet Narain unearthed Hawala Scam, how could he sustain a lone crusade against the entire establishment, without the backing of a media house or political party? Ever since 9/11 took place in USA there has been persistent demand from the global readership to know about this scam. Unfortunately, till now Narain's hair raising account of this crusade was available only in Hindi. In its Silver Jubilee year, for the first time, we are starting a series in English to inform the global audience, as to why terrorism could not be checked in India due to lack of political and judicial will. Besides the concerned readers, young generation of media persons, advocates and activists will find it interesting, informative and inspiring….
Chapter 1 Almost a quarter of a century after the fact, people are still asking, What exactly was the Jain Hawala scam?” The short answer: it was about the illegal transfer of funds worth Crores of Rupees, to scores of politicians and bureaucrats, from the same source as was used to fund the Kashmiri terrorists. Money was being sent by Dr. Ayub Thakur from London, and Tariq Bhai from Dubai, through the Jain brothers in Delhi. After the arrest and subsequent interrogation of two Kashmiri terrorists in Delhi, when the CBI began conducting raids and reached the premises of the Jain brothers, it unearthed accounting records of illegal dealings worth Crores of Rupees, along with a huge Hawala of foreign currency. These accounts came to be known as the 'Jain Hawala diaries'. The CBI team was shocked by the number and magnitude of the payoffs and by the names of recipients recorded in those diaries – which included many of the elite in the salons of political power at the Centre, including Union Ministers and the Leader of the Opposition. Terrorism is the biggest scourge facing human civilization today. No one really knows how to put it down. But it has become absolutely clear now that money for terrorist activities is routed through Hawala channels, as confirmed in many cases during the last two decades. So much so that today, the world feels it seriously necessary to choke off Hawala channels of global funding. Even the US President believes that terrorism cannot be eliminated without coming to grips with the Hawala trade. Since the World Trade Center's Twin Towers went down on 9/11, the American government has made notable headway in this direction, twice amending its antiterrorism laws to facilitate operations against the funding of terrorism. The US has worked towards this end all over the world. On its own and also though global alliances, it has sought to make it difficult for terrorists to either receive funds or move them from place to place. With the help of international security and monitoring agencies and financial institutions, the US government has been able to freeze funds worth $139 million and seize properties worth $60 million. Nothing of this sort was done in India. The fact is that, in 1993, an enormous opportunity came to us: a case involving a huge Hawala funding and transfer nexus that spread across the whole of India. It
implicated 115 people of influence who were receiving funds through the illegal Hawala channels based in Dubai and London that were also funding Kashmiri terrorists. Thorough investigation of these links to the funding of Kashmiri terrorists should have been conducted routinely. But the entire bureaucracy, including some top officers in the Home Ministry, sat silent. Nothing was done, despite the public outcry that arose once the nexus was exposed. Shocking and disheartening as was the government's apathy and inaction, nothing happened either after a Public Interest Litigation (PIL) was admitted by India's Supreme Court and tom-tommed in Delhi as judicial activism. The illegal channels of funding could still not be reached. It is anomalous that the same evidence, considered enough to prosecute and punish a common man, holds no threat to the power elite in the same court of law. The same evidence on which a small businessman or common man is harassed for months together is not strong enough to convict the high and the mighty. This was why people then at the helm of affairs did not even bother to look into an issue as serious as the Hawala nexus with terrorists: their own necks were in the same noose. More ironical and unfortunate is the continued silence of those at the summit of power. Many key leaders and politicians of the time have painted a distorted picture of the facts of the Jain Hawala scam in their statements and memoirs. They made deliberate attempts to mislead the people of this country with ill-conceived cock and bull. A series of developments over the past few years, giving exposure related to the Jain Hawala scam, has repeatedly confirmed that a thorough, sustained investigation at that time would have helped enormously to combat and reduce terrorism and corruption in the country.
shield unless we ourselves muster the will to break the shackles of cynicism and sycophancy, muster up enough courage and conviction to break the mould. The Hawala is the easiest, fastest and safest mode of the transfer of funds and resources worldwide, legal or illegal, because no paperwork is involved in its modus operandi: the whole system runs on mutual trust and cash transactions. The biggest challenge for all security and monitoring agencies across the globe is to crack down on those transactions through a coordinated and orchestrated effort. Only then will it be possible to reach the core issue, i.e. the source of funds. Until there is a fool proof method to track and terminate those sources at the international level, no amount of preparation will be good enough to eliminate this threat once and for all. I, along with my associate Rajneesh Kapur, stumbled upon a huge volume of evidence during our Hawala investigations. Subsequently, government also raided many places, and more links and channels of this scam were uncovered. But the entire exercise involved so many powerful people at various levels across the country that even so powerful an investigating agency as the CBI got cold feet about routine pursuit of vital leads and evidence. And that was the saddest part of the whole exercise: it poured cold water on all our hard work unearthing India's most dangerous (if not biggest) scam.
I am confining this book specifically to the Jain Hawala case of 1993, because I believe that this episode can demonstrate clearly what If you have evidences of corruption in places Kalchakra News Bureau can changes should be made in the high take them up with our limited resources investigation and enforcement and unlimited energy. Write to us at : kalchakranews@gmail.com procedures used to unearth and cut off the real sources and modes of funding to various terrorist outfits. Epaper published by Rajneesh Kapur, for and Most unfortunate is that those who behalf of Kalchakra Samachar Trust, spend millions of dollars to C-6/28, SDA, Hauz Khas New Delhi - 110016 perpetrate such cold-blooded (Ph. 011-26566800) at New Delhi crimes have succeeded in creating a shield for themselves with the help Disputes subject to Delhi jurisdiction only. of unscrupulous politicians and bureaucrats. It would be extremely difficult and cumbrous to pierce that