Fund-crunch: Former Air India boss splurges benefits on superannuated aide

It is an expenditure that loss-making national carrier Air India could do well without. A superannuated director, finance, has been brought back on the same terms, in what insiders call an unprecedented move. Venkat, reportedly the blue-eyed boy of former chairman Rohit Nandan, has been appointed advisor in the Air India after the latter proposed to appoint him as advisor when the Aviation Ministry refused to extend his tenure citing extant rules.

Nandan proposed this in the last days of his tenure, which was cleared by the Ministry. 

With this, Venkat will be entitled to his last drawn remuneration and can oversee almost all functions that he looks after as director (finance). Though the Ministry has selected V Hejmadi as director-designate, finance, Nandan has categorically clarified that there will be no duplication of functions and responsibilities on the appointment Venkat in Air India with those of Hejmadi.

The ministry has approved Venkat’s last drawn salary as his remuneration, which is Rs 1,78,000 per month.

In a letter written by Nandan to Aviation Secretary Rajiv Nayan Choubey in July this year, the then chairman had said: “Venkat will be superannuating on October 31 and since he has more than 33 years of experience in the airline industry and been closely associated with the formulation and implementation of Air India’s financial restricting plan, turn-around plan and financing of various aircraft projects, besides normal financial functions.”

Nandan advocated that Venkat had full knowledge of the nuances of Air India’s current situation and his presence in the company would be important in view of various ongoing projects. 

Nandan had also suggested the Aviation Secretary that if for any reason, Venkat’s extension is not possible under the rules, he may be allowed to be hired on a contract with substantial empowerment over the projects of implementation of TAP/FRP, aircraft financing, monetisation of assets.

Talking to Millennium Post, Ashwani Lohani, the incumbent CMD of Air India said: “It is an old case and since he has been appointed, the national carrier will utilise the expertise of the concerned official.”

Lohani, however, refused to comment if he would review the order as Venkat’s appointment will strain financial burden on loss-incurring Air India. Despite several attempts, Nandan remained incommunicado.