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Lawsuit against RNAC


A group of lawyers have filed a lawsuit with the Supreme Court calling for a stay order on RNAC's recent decision to lease an aircraft from Lauda Air of Austria. The deal is also under investigation by parliament's Public Accounts Committee. The lease was signed after direct negotiations, rather than by inviting tenders, which the petitioners say was illegal. The lawsuit also casts suspicion on the payment procedure.

Hari Bhakta Shrestha, executive chairman of RNAC, has defended the deal saying, "Negotiations with Lauda Air were held only after we failed to lease an aircraft despite four tenders and one sealed offer." He added that backing out of the agreement at such a late stage would attract penalties and possibly litigation, and prove extremely expensive.


LATEST ISSUE
638
(11 JAN 2013 - 17 JAN 2013)


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