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Govt tells aviation watchdog DGCA to fix conflict of interest lapses: Report

India’s civil aviation ministry has reprimanded the DGCA over lapses in handling potential conflicts of interest involving officials’ relatives employed in the aviation sector, Reuters reported

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People stand outside the entrance to the headquarters of the Directorate General of Civil Aviation in New Delhi, India. File/Reuters
People stand outside the entrance to the headquarters of the Directorate General of Civil Aviation in New Delhi, India. File/Reuters
FP Business Desk|Jul 22, 2026, 12:37:23 IST

India’s civil aviation ministry has reprimanded the country’s aviation safety regulator for failing to adequately prevent officials from using their influence to help family members secure jobs in the aviation sector and for delays in disclosing such appointments, Reuters reported on Wednesday, citing government documents.

According to the report, the Ministry of Civil Aviation has repeatedly raised concerns with the Directorate General of Civil Aviation (DGCA) since mid-2025 over how the regulator has handled potential conflicts of interest involving officials’ relatives working for airlines and other aviation companies, including a case involving Air India.

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The concerns come at a critical time for the DGCA, which is overseeing one of the world’s fastest-growing aviation markets while facing staffing shortages and heightened scrutiny following an Air India Dreamliner crash, safety lapses at the airline and major operational disruptions at IndiGo.

The regulator is also dealing with a federal police investigation after one of its officers was accused of accepting a bribe. In addition, the DGCA is due to undergo a routine safety audit by the US Federal Aviation Administration within months.

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A DGCA document from January, reviewed by Reuters, summarised the ministry’s concerns over the regulator’s handling of conflicts of interest.

“(The) DGCA has not been able to effectively prevent or manage the possible influence exercised by its officials in the recruitment or placement of their relatives, family members, or dependents,” the document said, as reported by Reuters.

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The documents did not indicate whether the ministry planned to take further action against the regulator, the report said.

More DGCA officials disclose relatives in aviation sector

As of January 31, 51 DGCA officials had disclosed 59 relatives working in the aviation sector, up from 33 officials who had disclosed 41 relatives a year earlier, the report said.

The relatives were employed by companies including IndiGo, Air India, Akasa Air, Airbus India, as well as flying schools and airport operators.

Indian rules prohibit federal employees from using their position or influence to secure jobs for family members. Officials are also required to make certain disclosures and obtain approvals in cases involving potential conflicts of interest.

The issue of conflicts of interest has surfaced previously across India’s public sector. Four DGCA officers were censured in 2013 over such concerns.

A senior government official with direct knowledge of the matter told Reuters that the civil aviation ministry remained concerned about the potential for regulatory influence.

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According to the report, DGCA officials could potentially fail to disclose that relatives were employed by airlines they oversee or could soften regulatory scrutiny involving those companies.

With inputs from agencies.

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First Published:Jul 22, 2026, 12:37:23 IST
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