Bribery Scandal Rocks India's Aviation Regulator, Reliance

Indian authorities on April 20 arrested an official from the Directorate General of Civil Aviation (DGCA) and an executive from Reliance Industries over bribery allegations linked to approvals for importing drones, officials said. The Central Bureau of Investigation (CBI) said the action followed information about a payment intended to speed up regulatory clearances.

According to the CBI, the case centers on an alleged payment of 1.5 million rupees ($16,000) connected to efforts to accelerate three applications for drone imports submitted by Asteria Aerospace. Officials described Asteria Aerospace as a subsidiary of Reliance Industries’ Jio Platforms. The CBI said it opened the investigation after allegations that a DGCA official sought an “undue advantage” in exchange for processing approvals.

Officials identified the arrested individuals as Mudavath Devula, a deputy director general at the DGCA, and Bharat Mathur, a senior vice president at Reliance. The CBI said searches at the DGCA official’s premises and other locations resulted in the recovery of 3.7 million Indian rupees ($40,000) in cash. Officials also reported finding gold and silver coins during the searches.

The arrests come at a sensitive moment for Reliance’s digital and technology arm. Jio Platforms, led by Mukesh Ambani, is preparing for a potential initial public offering (IPO) in Mumbai that has been anticipated as India’s largest stock offering, officials said. The case adds a new compliance and governance issue to the public narrative around the group as it approaches a possible market listing.

The episode also draws attention to the DGCA’s operating environment as it oversees India’s aviation sector. Officials noted the regulator is dealing with staffing shortages while carrying out its responsibilities. The allegations involve the processing of import approvals, a function that can be critical for companies seeking to deploy drones and related technologies within regulated frameworks.

India’s broader anti-corruption context remains in focus as the investigation proceeds. India ranked 91st on Transparency International’s Corruption Perceptions Index last year, according to the cited ranking. The CBI has outlined the alleged payment and the items recovered in searches, but the case’s legal outcome and any further actions remain uncertain based on the information provided so far.