ED SUMMONS CEO FERNANDES, AIRASIA EXECS IN PMLA CASE
NEW DELHI: The Enforcement Directorate (ED) has summoned senior executives of Airasia, including CEO Tony Fernandes, next week for questioning in connection with a money laundering case, officials said on Thursday. The probe agency had registered a case under the Prevention of Money Laundering Act (PMLA) against the airline and its officials in 2018.
NEW DELHI: The Enforcement Directorate (ED) has asked the senior management of Air Asia, including its Malaysia based chief executive, Tony Fernandes, to appear before it for questioning in its money laundering probe related to securing FDI (foreign direct investment) approval and a permit to operate flights, two investigators said on condition of anonymity.
ED initiated a probe against Air Asia in 2018, a few days after CBI registered a corruption case against the company alleging that the airline used lobbyists to get the so-called 5/20 rule for operating international flights removed or amended.
This rule stated that airlines needed to have been in operation in India for at least five years and have at least 20 aircraft before they could be allowed to ply overseas routes.
CBI named Fernandes, his deputy Tharumalingam Kanalingam, alias Bo Lingam, R Venkataramanan, alias Venkat (a Tata Sons nominee on the board), Rajinder Dubey (Director of HNR Pte Ltd, Singapore), Sunil Kapur (Chairman of Total Food Services, Mumbai), Deepak Talwar, Airasia India Ltd (AAIL) and Air Asia, Berhad (Kuala Lumpur), which has 49% stake in the Indian subsidiary.
The irregularities were first made public by ousted Tata Group chairman Cyrus Mistry. He alleged that there were fraudulent transactions of ₹22 crore in the airline.
Air Asia received FIPB approval in February 2013 and an NOC (no-objection certificate) in September of the same year.
The airline received an Air Operating Permit (AOP) in May 2014, days before the United Progressive Alliance lost the Lok Sabha elections to the BJP.
One of the ED officials cited above said Fernandes has been asked to join the probe on January 20 in India while a few other senior executives have been asked to come on the following days. The agency didn’t name the others who have been summoned.
An Air Asia Spokesperson had not responded to a HT query till late evening.