In a major crackdown on financial misconduct, the Central Bureau of Investigation (CBI) has arrested Rahul Vijay, a Senior Manager (Finance & Accounts) with the Airports Authority of India (AAI), for allegedly embezzling ₹232 crore from the organization’s funds. The arrest, announced on August 30, 2025, has sent shockwaves through the aviation sector, exposing vulnerabilities in the financial oversight of one of India’s key public sector enterprises. The case, centered around Dehradun Airport, where Vijay was posted between 2019 and 2023, highlights a sophisticated scheme of fraud involving the manipulation of official and electronic records to siphon off public funds into personal accounts.
The CBI’s investigation was triggered by a formal complaint lodged by Chandrakanth P, another Senior Manager (Finance) at AAI, on August 18, 2025. The complaint detailed irregularities discovered during an internal audit, which flagged abnormal capitalization of assets in the financial records spanning 2019-20 to 2022-23.
Following the audit, AAI constituted a committee to verify the findings, which uncovered a complex trail of fictitious accounting entries, asset inflation, and unauthorized fund transfers orchestrated by Vijay. The scale of the embezzlement, described as one of the largest financial frauds in the aviation sector, has raised serious concerns about internal controls and accountability within AAI.
According to CBI officials, Vijay, who was an authorized signatory for AAI’s official bank accounts with the State Bank of India, exploited his position to execute the fraud. He allegedly created three separate user IDs to facilitate clandestine transfers, initially testing the system with small transactions before escalating to larger sums. The investigation revealed that Vijay manipulated electronic records by creating duplicate and fictitious assets, inflating their values—sometimes by simply adding zeros to entries—to evade routine detection. A notable instance occurred on September 29, 2021, when Vijay recorded genuine assets worth ₹67.81 crore for electrical works at Dehradun Airport’s new terminal building. The following day, he allegedly created 17 fictitious assets totaling ₹189 crore by duplicating 13 original assets valued at ₹13.58 crore, inflating figures, and transferring the funds to his personal accounts. Additionally, ₹43 crore was siphoned off through fraudulent entries recorded as revenue expenditure under various heads during the same period.
Preliminary analysis of Vijay’s bank transactions revealed that the misappropriated funds were funneled into trading accounts controlled by him, used for speculative investments. This systematic diversion of public funds for personal gain underscores the audacity of the scheme, which went undetected for years due to loopholes in AAI’s auditing mechanisms and weak financial controls. The CBI’s probe has also uncovered evidence of Vijay transferring funds to a contractor for legitimate work while simultaneously diverting inflated amounts to his own accounts, further masking the fraud.
On August 28, 2025, CBI teams conducted searches at Vijay’s official and residential premises in Jaipur, where he was currently posted. The raids led to the recovery of incriminating documents, including property papers, valuable securities, and other assets suspected to be linked to the embezzlement. Vijay was arrested on August 29 and brought to Dehradun, where he was produced before a special CBI court on August 30. The court remanded him to judicial custody, and the CBI continues its investigation to trace the full extent of the money trail and identify any potential accomplices.
The arrest has sparked widespread concern about the integrity of financial systems in public sector organizations. Experts have pointed out that the scale of the embezzlement indicates a significant breakdown in institutional oversight, raising questions about the effectiveness of AAI’s internal auditing processes. The Ministry of Civil Aviation has responded by directing AAI to conduct a comprehensive review of its financial systems to prevent similar incidents in the future. Legal experts suggest that Vijay could face charges under the Prevention of Corruption Act and sections of the Indian Penal Code related to criminal conspiracy, breach of trust, forgery, and falsification of accounts. If convicted, he could face a lengthy prison sentence, hefty fines, and asset seizures.
The case has also drawn attention to the broader implications for India’s aviation sector, which is grappling with infrastructure expansion and financial sustainability. Such scams not only erode public trust but also jeopardize critical airport development projects. The CBI has emphasized its commitment to combating corruption in public institutions, stating that the investigation will proceed “without fear or favor” to ensure accountability. As the probe deepens, authorities are scrutinizing Vijay’s financial dealings to uncover additional illicit transactions and determine whether other individuals were complicit in the fraud. This high-profile case serves as a stark .
What do you think over this news write a comment below
Discover more from AMERICA NEWS WORLD
Subscribe to get the latest posts sent to your email.
