NEW DELHI: In a major disciplinary sweep, Air India has uncovered widespread discrepancies in the utilization of its Employee Leisure Travel (ELT) policy, involving more than 4,000 employees. The Tata Group-owned airline has initiated rigorous corrective actions, including heavy financial penalties and demands for refunds, after an internal investigation revealed systemic misuse of travel benefits intended for staff and their families.
The investigation found that a significant number of employees—many of whom reportedly joined the carrier post-privatization—exploited the ELT policy by registering unrelated individuals as family nominees to secure free airfare. In more severe cases, some staff members allegedly sold these complimentary tickets to third parties at a premium, converting a company perk into an illegal profit stream. The fraudulent activities date back to at least the last financial year, raising serious concerns regarding internal conduct and oversight within the organization.
Under the standard ELT policy, Air India staff are entitled to 14 return air tickets per financial year for themselves and designated dependents, such as spouses and parents. In response to the breach, the airline has significantly tightened its verification protocols. Employees are now required to submit stringent proof of relationship for all nominees, and the booking system has been updated to flag irregular patterns.
Sources close to the development described the situation as a “profound failure of morality and conduct.” While Air India has not officially commented on the total financial impact of the fraud, the airline is moving swiftly to recover the lost revenue by asking the erring staff to refund the value of the fraudulently availed tickets. This crackdown comes as the airline continues its ambitious “Vihaan.AI” transformation plan to return to profitability and global competitiveness.
