Odisha govt terminates agreement with Air Odisha

Odisha Sun Times Bureau
Bhubaneswar, May 31:

The Odisha government today served notice to Air Odisha Aviation Pvt Ltd (AOAPL), the private intra-state air service provider to terminate its agreement with it.

The notice served by the General Administration department of the state government to Air Odisha seeks to terminate the state government’s agreement with the private air carrier with effect from June 1.

The department had served a show cause notice to the private air operator on May 26 on why the state government should not terminate its agreement with it.

Air Odisha had replied to the show cause notice on May 30, not satisfied with the reply the government today served notice to the private air operator to terminate its agreement from June 26.

“This is a conspiracy against us. We request the Chief Minister to intervene in the matter. We will take the matter to the court if the situation so warrants,” said Santosh Pani Chairman-cum-Managing Director AOAPL in his reactions on the development.

It may be recalled here that a top executive of ITCL Ireland Ltd, Steven Nixon on May 3 had lodged a complaint with the state government at the General Administration department against AOAPL alleging monetary fraud by the air service operator.

Nixon had claimed that AOAPL had obtained aircrafts on contract from the company and Rs 2.5 crore is due on them.

AOAPL is mired in controversies since multiple investors have alleged of fraud by the company’s management.

Mitesh Khimji, director of Khimji Jewellers (KD & Sons Pvt Ltd) an investor in AOAPL on May 2 alleged before the Khandagiri police here that AOAPL had cheated him of Rs 1.5 crore.

Similarly, another investor Sandeep Ray, son of BJP MLA and hotelier Dilip Ray, had also levelled similar charges against AOAPL of cheating him of Rs 40 lakh and had filed a case with the Khandagiri police here.