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As early as 2015, the then AirAsia India board member Bharat Vasani, had flagged his concerns on the lack of governance issues to top bosses of the carrier that includes “large scale legal and regulatory violations”. In a series of e-mails sent to the airline company, Vasani had also warned of exposing directors to criminal liability and damage of reputation to the group.
“I am being forced to continue on the board of the company, where despite my daily instructions, no steps are being taken by the management to rectify the situation. There are large scale legal and regulatory violations in the company and no steps are taken by the management to rectify them,” said an e-mail sent on March 13, 2015.
“Under these circumstances, I am left with no other alternative but to resign from the board with immediate effect,” the letter, which was reviewed by BusinessLine , said. The letters are also part of the fresh response filed by Mistry camp before the National Company Law Tribunal (NCLT), responding to Tata Sons’ affidavit.
AirAsia India is a firm floated by Malaysian low-fare carrier AirAsia Bhd and Tata Sons and the companies hold a 49 per cent stake each in the carrier. AirAsia India Chairman S Ramadorai and director R Venkataramanan own the remaining 2 per cent in the company.
The letter was also copied to Ramadorai, Venkataramanan, Tata Sons then chairman Cyrus Mistry and former AirAsia India Managing Director and Chief Executive Officer Mittu Chandilya.
Mistry had then asked Vasani to raise the issues before the board.
Vasani, who is now the General Counsel of Tata Group, had resigned from AirAsia India board on November 24, 2015.
In an e-mail on March 31, 2015, Vasani had expressed his “strongest displeasure” for the lack of attention to legal compliance in the carrier. He had also pointed out that audited accounts for the year ended March 31, 2014, were not filed with the Registrar of Companies almost seven months after the last date.
“It is a very serious lapse and exposes all the directors to criminal prosecution. This is totally unacceptable,” it said, adding this was despite repeated reminders.
Later on June 21, 2015, Vasani alleged in an e-mail that AirAsia India has a dysfunctional board and has no corporate governance. “The company is run like a department of AAB (AirAsia Bhd) and not as a JV,” he had alleged.
Mistry, in his response before NCLT, also accused Tata Group of forcing Vasani to commit perjury to protect the managing trustee of Tata Trusts and other close associates.
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