₹2.5 Lakh, Three Files, One Arrest: CBI Cracks Down on DGCA-Reliance Bribery Nexus

The Central Bureau of Investigation (CBI) on Saturday, April 18, arrested a senior official from India's civil aviation regulator, the Directorate General of Civil Aviation (DGCA), and an executive from Reliance Industries, in connection with an alleged bribery of ₹2.5 lakh to secure regulatory approvals for drone imports.

The two accused have been identified as Mudavath Devula, Deputy Director General at DGCA, and Bharat Mathur, Senior Vice President at Reliance Industries. Both have been booked under the Prevention of Corruption Act and relevant provisions of the Bharatiya Nyaya Sanhita on charges including criminal conspiracy and bribing a public servant.

What the CBI Found

The arrests followed a tip-off that the two had allegedly agreed on a payment to process three pending applications related to drone imports by Asteria Aerospace, a subsidiary of Jio Platforms, Reliance Industries' technology arm led by billionaire Mukesh Ambani.

According to the FIR, the bribe was fixed at ₹5 lakh per application file. Mathur had met Devula at the DGCA office on April 17, where he was assured the approvals would be cleared the same day. Devula allegedly directed Mathur to deliver the money the following day at Essex Farms, near the IIT Delhi flyover. The CBI apprehended both while the cash was being exchanged and seized ₹2.5 lakh on the spot.

Searches at Devula's residence and other premises subsequently led to the recovery of ₹37 lakh in cash, along with gold, silver and multiple digital devices.

The CBI stated that it launched the investigation on the basis of an allegation that the accused public servant demanded undue advantage from private individuals in exchange for clearing applications pending with the regulator. The agency further alleged that Devula had acted in connivance with private entities, raising questions about the broader network potentially involved in facilitating such approvals.

The case has drawn attention not only because of the seniority of the accused, a deputy director general at a key regulatory body, but also due to the corporate profile of the private party involved. Asteria Aerospace, though a relatively smaller entity, sits within one of India's most closely watched conglomerates.

Responding to the incident, a Reliance Industries spokesperson distanced the company from Mathur's alleged actions, stating that he was engaged as a consultant and that the company was unaware of any such transaction, nor had it authorised one.

Asteria Aerospace describes itself as a drone technology company offering customised aerial intelligence solutions, with over 400 drones deployed to date.

What's at Stake

The timing adds another layer of scrutiny, with Jio Platforms gearing up to file papers for what could be India's biggest-ever initial public offering. Ahead of the planned initial public offering (IPO), foreign investors are set to pare down around 8% of their individual holdings, according to a report an earlier by the Economic Times. None of the investors, however, are expected to make a full exit.

The proposed divestment will be proportionately distributed across Jio’s 14 marquee investors, with each expected to trim roughly 8-8.5% of their stakes. This translates to about 2.8% of Jio Platforms’ total outstanding shares being offered in the IPO, amounting to nearly 250-252 million shares.

Meanhwile, the investigators are continuing their probe in the recent case, and the identity of other unnamed accused persons mentioned in the FIR is yet to be established.