NEW DELHI: The Civil aviation ministry on Thursday said it is keenly watching the developments and purported disclosures made by ousted Tata group chairman Cyrus Mistry about AirAsia India and will act once the matter is brought to its notice.
Civil aviation secretary RN Choubey said the ministry has not received anything on allegations made against Air Asia India. We are waiting for official inputs and would act when we get a formal complaint. Choubey was reacting the Mistry's raising ethical concerns in Tata group's aviation joint venture with
AirAsia India. Mistry has alleged fraudulent transactions of Rs 22 crore involving non-existent entities in India and Singapore on behalf of Air Asia India.
A senior official with the Directorate General of Civil Aviation (DGCA) said that if anything new is brought to its notice it will act in accordance to the powers delegated to the regulator. DGCA is India's aviation regulator. Mistry in a letter to the Board members of Tata Sons on Wednesday had claimed that owing to Ratan Tata's passion for aviation, the Tata Sons board had increased capital infusion in the aviation sector much more than what was initial committed.
``Malaysia Board members and trustees are also aware that in the case of AirAsia, ethical concerns have been raised with respect to certain transactions as well as overall prevailing culture within the organisation. A recent forensic investigation revealed fraudulent transactions of Rs 22 crore involving non existent parties in India and Singapore," Mistry said in the letter.
Mistry has further alleged that executive trustee Mr Venkataraman, who is on the board of Air Asia and also a shareholder in the company, considered these transactions as non-material and did not encourage further study".
Mistry was unceremoniously and abruptly removed as chairman of the Tata Group on October 24 and replaced by his predecessor Ratan Tata. Ratan Tata will head the Tata Group for the next four months till the Board finds a new chairman.
AirAsia India is co-owned by Tata Sons (41%) and AirAsia Malaysia (49%). The airline started its operations in June 2014 and currently has a fleet of 8 narrow-bodied Airbus A320-200 planes and has a market share of 2.2 %.
AirAsia India is the first foreign airline to set up a subsidiary in India. Its launch brought back Tata's to the
aviation industry after 60 years, after it ceded Air India in 1946.
Tata's also have a JV with Singapore Airlines in India and operate a full service carrier like Jet Airways and Air India with 13 narrow-bodied Airbus 320-200 planes. It started its domestic operations in January 2015 and its market share is 2.8%.