NEW DELHI: The Enforcement Directorate (ED) on Wednesday carried out searches to unearth the money trail in the case against Malaysia-based AirAsia Group CEO Anthony Francis Tony Fernandes, Air Asia India Limited (AAIL) and its director R Venkataramanan, Air Asia Berhad (Malaysia) and others. The raids were conducted in Delhi, Chandigarh, Ahmedabad, Mumbai and Bengaluru under the Prevention of Money Laundering Act (PMLA).
The move comes a day after the CBI registered an FIR against the management and company officials for violation of FDI norms and payment of bribes in an attempt to get an international-operations licence.
The FIR also claimed that the Air Asia also allegedly violated FIPB norms in giving effective management control to a foreign entity by making AAIL a de facto subsidiary indirectly, rather than a joint venture.
However, AAIL has refuted any wrongdoing.
“Allegations concerning indirect foreign control of AirAsia India Ltd allegedly in violation of FIPB norms have been fully investigated by the Director General of Civil Aviation and the DGCA has passed a detailed and reasoned 12 page order to this effect on February 8, 2017. The DGCA Order was pursuant to an investigation exercise mandated by the Delhi High Court by its order on November 11, 2016 in Writ Petition (C) No. 1373 of 2014. The DGCA Order effectively ruled that the operations and management of AAIL was in accordance with FEMA, FDI Regulations and the FIPB approval granted to AAIL.
Furthermore, the DGCA Order ruled that the terms of the Brand Licence Agreement (BLA) were meant only for ensuring uniformity of brand use and quality of services and that such terms are for benefit of passengers. The DGCA noted that the BLA is a common practice in the aviation industry. In this backdrop, AAIL believes that to allege that control of AAIL is not in accordance with foreign exchange investment laws is incongruous,” Air Asia India said in a press statement.