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5.30 pm: India’s air traffic management department has proposed to set up an all-India database of all Indian carriers for tax compliance purposes.

The proposal to set it up came as the airline sector has been rocked by a massive fraud involving more than 4,500 flights.

The scam, which involved fake passenger lists and fake aircraft registration, was uncovered in January, when Air India was caught paying bribes of ₹100 crore to get a passenger list to be submitted to the tax department.

The ministry had recommended a five-year period to deal with the issue.

The proposal is expected to be approved by the department on Thursday.

The air traffic control department (ATCD) said the database would allow the regulator to trace and track every airline.

“This will give more visibility on the tax evasion activities of Indian airlines,” said a statement.

Airline industry body Air India said it was not aware of any such database being set up and welcomed the move.

“We welcome the initiative, which will help in combating tax evasion,” said the statement.