The Central Vigilance Commission has launched an investigation against French aircraft manufacturer EADS Airbus for unfair trade practices on a complaint filed by Delhi-based Consumer Forum.

In a letter to the Consumers’ Forum president, the CVC has confirmed that it has registered “the complaint regarding corrupt practices by EADS Airbus SAS” and it has been forwarded to the chief vigilance officer in the defence ministry for action.

The move follows the demand for a probe by Consumers Forum against Airbus for damage to the Indian cargo industry. The forum alleged that the European aerospace giant had violated several Indian laws, including provisions of the Competition Act.

In a related development, vice-president Hamid Ansari’s office has forwarded the complaint by the forum to the company affairs department to take note of “unfair trade practices, corrupt practices and abuse of dominant position by Airbus”.

Telugu Desam MP MV Mysura Reddy had raised the issue in the upper house during the monsoon session. He had alleged that Airbus was involved in unfair trade practices that “resulted in substantial damage to the Indian economy.”

PTI had reported on September 28 that Consumer Forum, in its petition to the President, prime minister and other government agencies, urged for a probe against Airbus for its unfair trade practices that led to loss of business for Hyderabad-based Flyington Freighters due to non-delivery of aircraft by the European aerospace major.

The case refers to $2.3 billion Airbus-Flyington Freighters deal signed in 2007 for supply of 12 Airbus A330-200 freighter aircraft to Flyington. The Indian firm was the first customer of such aircraft and deliveries were to begin from July 2008. However, the first cargo carrier was delivered last month to Etihad Airways –– the national carrier of the United Arab Emirates –– by Airbus.

“It is important for the government to intervene and set up a high-level and time-bound probe to initiate corrective action and enforce the pre-bid integrity pact to undo the damage done to the company,” the forum said in a statement.

The forum requested the government to take remedial measures to prevent any such occurrences in future. “We have maintained a continuous dialogue with the customer. A contractual amendment was agreed upon by both the parties in 2009, to delay delivery as Flyington was having difficulty in making the required pre-delivery payment,” an Airbus spokesperson said in an e-mailed response.

Reddy had demanded a probe by agencies like the Competition Commission and enforcement directorate. He had said that Airbus also violated RBI and Fema norms.