Central Vigilance Commission unearths Rs 190 crore flying club fraud

A large number of flying schools across India are involved in an elaborate fraud, posing as no-profit no-loss operations while raking in crores.
An investigation by the Central Vigilance Commission has found that a majority of flying schools/clubs in India posed as registered societies, operating on no-profit no-loss basis, to avoid paying the government full fee for operations. Resultantly, the government has lost at least Rs 190 crore in revenue, according to the CVC probe.

Airports Authority of India (AAI) officials allowed 28 flying schools to wrongly claim that they were either registered educational societies or were run on no-profit no-loss basis. This qualified them to pay only a nominal fee to the government.
Sources said the CVC has written to the civil aviation ministry to take appropriate action against officials who allowed the flying schools to hoodwink the system.
The CVC probe found several deviations from rules: These clubs were not registered as educational societies, most of them were not operating on a no-profit no-loss basis and some were even involved in commercial operations.

The nominal fee for flying clubs is just 10% of the original fee to be paid to the government. This nominal charge is only permitted for those that are registered as educational societies and run on no-profit no-loss basis, and not as profit-making entities.

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