Air Odisha director held for Rs 40 lakh fraud

Bhubaneswar: Less than 24 hours after the Odisha government terminated the agreement of intra-state air service provider Air Odisha Aviation Pvt Ltd, the Khandagiri police arrested the director of the company on Wednesday for cheating a person to the tune of Rs 40 lakh.

Police said, Santosh Pani was arrested based on the complaints filed by Sandeep Ray, one of the company’s stakeholders.

Pani is likely to be forwarded to court tomorrow, police sources said.

The Centre for Modernising Government Initiatives (CMGI), an arm of General Administration Department, cancelled the Air Service Operation Agreement (AOA) with the operator citing 'breach of terms and conditions' with effect from June 1.

In the termination notice, Executive Director of CMGI NK Sethi directed Air Odisha to remove its aircraft from the Government hangar and vacate the premises, where the City-based company ran its office, within 15 days.

On May 26, the Government had slapped a show cause notice on Air Odisha asking it to explain by May 30 why the AOA should not be terminated.