irAsia India offers to provide full info in India probe

irAsia India offers to provide full info in India probe

NEW DELHI: AirAsia India, a joint-venture between AirAsia Bhd and Tata Group, has offered to provide full information to India’s Central Bureau of Investigation (CBI) in connection with the allegations of questionable payments.

“AirAsia India has not heard from the CBI. Should we receive a call from the bureau, we will furnish all information that they seek,” the airline said.

The airline was responding to an Indian media report on Thursday that the CBI was looking to investigate the allegations of suspicious transactions of 220 million rupees (RM14.47mil) involving non-existent entities in India and Singapore.

India’s Enforcement Directorate is already looking into those allegations made in October by Tata Group’s ousted chairman Cyrus Mistry in a letter to the company’s directors.

 “As you are aware, the airline has already put it in the public domain that it is pursuing the ongoing investigation. AirAsia India subsequently filed a private complaint with the Bangalore police in this regard,” an AirAsia spokesperson was quoted as saying in a PTI report.

AirAsia India was launched in 2013 in a partnership involving Malaysia’s AirAsia Bhd, Tata Sons and Telestra Tradeplace.

After Telestra exited the venture, AirAsia and Tata Sons each holds 49% stake in AirAsia India and the remaining two per cent is held by directors Ramadorai and R. Venkataramanan.

Mistry’s allegations about AirAsia India were part of his detailed letter to the Tata Sons board in which he highlighted management shortcomings, financial problems and differences with Ratan Tata, Mistry’s predecessor and now interim chairman, in managing the US$100bil group.

The Tata-Mistry corporate fight is being keenly watched in India. Mistry was replaced as Tata Group chief on Oct 24 in a move that shocked corporate India.

In his Oct 25 letter the ousted chairman had written: “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 the overall prevailing culture within the organisation. A recent forensic investigation revealed fraudulent transactions of 220 million rupees involving non-existent parties in India and Singapore.” – Bernama

Source:The Star