Investigation on in AirAsia ‘fraud’; govt says tracking developments
An audit investigation into the alleged “fraudulent transactions of ₹22 crore” in Tata Group’s aviation joint venture with AirAsia as mentioned by ousted chairman Cyrus Mistry is already underway, senior company officials told HT.
“It may have come before the world now but the audit investigation has been going on for a long time. What is very clear is that Mr Ratan Tata wasn’t involved in the operational decisions taken by AirAsia India (AAI), which has its own board and chief executive and chief financial officer,” said an official, who did not wish to be named.
The AirAsia India spokesperson did not comment for the story.
Mistry, in his letter to the directors of Tata Sons, had indicated that he did not want the group to enter aviation. “My pushback was hard but futile. However, I was able to extract a promise of no debt to be raised at the level of the JV as well as limiting Tata Sons investment to 30% of the $30 million equity,” he said in the letter.
However, earlier this year, the Tata Group increased its stake in AirAsia India to 49%. Two of the airline’s directors, S Ramadorai and R Venkataramanan, hold 2% stake. The remaining 49% is held by Malaysian firm AirAsia.
Tata Group officials, however, said the return of Ratan Tata as interim chairman did not mean that the conglomerate will further raise their stake in AirAsia India. “His (Ratan Tata’s) love for aviation is well known, but the airline is working fine and there are no plans to increase stake,” one official said.
The aviation ministry, meanwhile, is keeping a close watch on the developments at AirAsia India following the disclosures made by Mistry.
“We are waiting for any input from any quarter,” civil aviation secretary R N Choubey said. “We have not got anything so far”.
“The regulator gives the licence. If there are violations in it, the courts are there to look into it. The government will abide by whatever the court decides. Law of the land will have to be followed,” aviation minister Ashok Gajapathi Raju said.
However, an aviation ministry official said: “If anything new is brought to attention, appropriate authorities will look into it.”