THE BLINK | INVESTIGATION: An audit of Odisha’s aircraft-hiring arrangements raises questions about procurement transparency, the use of aircraft linked to a disqualified bidder and crores spent despite unused flying hours.
Bhubaneswar | October 30, 2026: Why did the Odisha government reportedly pay ₹92 lakh per month for aviation services when the selected provider had an underlying agreement valued at ₹53.10 lakh?
And how did aircraft associated with a bidder disqualified over an accident-related tender condition subsequently enter government service through another company?
These are among the questions emerging from the Comptroller and Auditor General’s findings concerning Odisha’s aircraft-hiring contracts.
According to the latest reporting on the audit, the arrangements resulted in an estimated financial implication of ₹4.92 crore.
The findings concern contracts and payments made primarily during the previous Biju Janata Dal government.
The ₹38.90-Lakh Monthly Difference
The controversy centres on the selection of OSSS Hospitality Management Pvt Ltd for government aviation services.
The state’s Commerce and Transport Department initiated fresh tenders after an earlier aviation contract expired in April 2021.
The first tender was cancelled because only one bidder participated.
A subsequent tender attracted seven bidders. Five were rejected for deficiencies in their documents.
Another company, Jet Serve Aviation Pvt Ltd, was rejected because an aircraft associated with it had been involved in an accident.
OSSS Hospitality Management consequently emerged as the sole technically qualified bidder.
But the audit identified an unusual contractual arrangement.
OSSS reportedly had an agreement with Jet Serve Aviation valued at ₹53.10 lakh per month, while the government paid OSSS ₹92 lakh per month.
The difference was ₹38.90 lakh monthly.
The CAG reportedly estimated the resulting financial implication at approximately ₹4.92 crore.
That comparison raises serious concerns about price discovery and the basis on which the higher government payment was approved.
However, the difference between two contract prices does not, by itself, establish that the entire amount was illegally diverted. The full scope of services, taxes, operational responsibilities and contractual obligations must be examined before determining the final recoverable loss or assigning responsibility.
The Disqualified Bidder Question
The audit reportedly questioned how aircraft associated with Jet Serve Aviation came to be used for government flights through OSSS after Jet Serve had failed to qualify under the tender’s accident-related conditions.
Between January and November 2023, 38 flights were reportedly undertaken through the selected provider.
The issue is not whether an aircraft previously involved in an accident is automatically unsafe.
The issue is whether the arrangement complied with the government’s own eligibility and safety requirements.
If a tender condition disqualified one company, could that condition effectively be bypassed through another company’s contract?
The government must disclose the aircraft registrations, operator approvals, applicable safety certifications and documents authorising the arrangement.
Another ₹8.21 Crore Under Scrutiny
The audit also identified questionable spending on additional aircraft and helicopter services.
Between January 2019 and November 2023, Odisha hired chartered aircraft on 22 occasions for interstate travel, spending ₹6.91 crore.
Yet 751.34 committed flying hours reportedly remained unused under an existing aviation contract.
Separately, the government spent ₹1.30 crore on helicopter services during 29 trips, despite substantial unused flying hours under the contracted aircraft arrangement.
The CAG questioned whether the additional expenditure could have been avoided through better utilisation of the services already paid for.
These are distinct audit observations. They should not automatically be added to the ₹4.92-crore figure and described as a single established loss.
Who Approved the Payments?
The contracts fall largely within the tenure of the former BJD administration.
That makes the original decisions, tender evaluations, extensions and payment approvals legitimate subjects of scrutiny.
But the present BJP government also has a responsibility.
Has it examined the CAG’s findings? Has it identified the officials who approved the arrangements? Has it sought explanations from the service providers?
And if the audit establishes recoverable excess expenditure, will the government pursue recovery?
The original tender documents, comparative financial bids, subcontracting agreements, flight logs and invoices should be made available for scrutiny.
The government should also disclose who travelled on the flights, the official purposes recorded and the authorities who approved each journey, subject to legitimate security restrictions.
An Audit Finding Is Not a Criminal Conviction
The CAG’s observations identify financial and procedural concerns. They do not, by themselves, establish bribery, criminal conspiracy or personal enrichment.
The companies and officials concerned must have an opportunity to explain the pricing structure and procurement decisions.
But those safeguards cannot become an excuse for administrative silence.
The question is not simply whether Odisha paid too much for aircraft. It is whether the state followed its own procurement rules, obtained value for public money and held decision-makers accountable when those safeguards failed.
For a government that promises transparency, the next step should be straightforward: publish the relevant contracts, explain the discrepancies and act on the audit findings.
Public money paid for the flights. The public deserves the full flight and payment records.
