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The Ministry of Civil Aviation cannot say anything on whether the on-going CBI investigation into AirAsia India Ltd (AAIL) will affect the airline’s plans of flying international or lead to a cancellation of its domestic flying licence.
“We are yet to receive any information from the CBI. We do not know the nature and scope of the investigation,” a senior Ministry official told newspersons here on Wednesday in response to queries on what will happen to the airline’s licence and permit to fly international.
Violation of norms
On Tuesday, the CBI booked Tony Fernandes, CEO of Malaysia-based AirAsia, for allegedly violating FDI norms and illegally securing a licence for the airline’s international operations from India.
The FIR has also named several others including Fernandes’ deputy, Tharumalingam Kanagalingam, V Ramachandran, Director, AirAsia (India), AirAsia Berhad, Malaysia, AAIL and unknown government officials.
In a statement to the Malaysia Stock Exchange today, AirAsia Group Berhad said it had noted the allegations made through the media as well as the investigations by CBI on AAIL’s office in Bengaluru.
The airline vigorously denies all accusations and contentions and believes that these trumped-up accusations are “baseless and motivated by considerations that as yet remain unknown”, it added.
“Allegations concerning indirect foreign control of AirAsia India Ltd have been fully investigated and the Director General of Civil Aviation (DGCA) had effectively ruled that the operations and management of AirAsia India was in accordance with FEMA (Foreign Exchange Management Act) as well as FDI regulations,” the statement further said.
“AirAsia completely denies these accusations, and will vigorously defend itself against these to the fullest extent of law.
“Legal action to protect AirAsia and its interests against these allegations will be taken against any person who is known to have maliciously and frivolously instigated, and or smeared the good reputation of individuals and shareholders of AAIL.”
Meanwhile, R Venkataramanan, a Tata Trusts trustee and non-executive Director of AAIL, said he had been wrongly named as an accused by the CBI on operational matters “where I had little or no role to play.”
‘Revenge actions’
He said in a statement that it is commonly known that the present accusations about AAIL find their root in baseless allegations made by Cyrus P Mistry and the Shapoor Pallonji Group against Tata Trusts’ trustees (Venkataramanan included) and Tata Sons in his ‘revenge’ legal actions.
“I reiterate that all allegations of wrong-doing or ill egality against me are baseless. These motivated allegations are part of the smear campaign run to discredit me and the work being done by the Tata Trusts, which contribute ₹1,200 crore each year to philanthropic activities,” his statement added.
AAIL also said allegations concerning indirect foreign control of the airline allegedly in violation of FIPB norms have been fully investigated by the DGCA, which had passed a detailed and reasoned 12-page order in February 2017.
The DGCA order effectively ruled that the operations and management of AAIL were in accordance with FEMA and FDI regulations, and the FIPB approval granted to the airline.
The statement also said the DGCA order ruled that the terms of the brand licence agreement (BLA) were meant only to ensure uniformity of brand use and quality of services and that such terms benefit passengers.
The DGCA noted that the BLA is a common practice in the aviation industry, the statement added.
“In this backdrop, AAIL believes that to allege that control of AAIL is not in accordance with foreign exchange investment laws is incongruous.”
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