AirAsia fires fresh salvo at former India CEO Mittu Chandilya

AirAsia Bhd's spokesperson said that personal expenses amounting to Rs 16.3 million were paid from company funds by Chandilya

Malaysian airline AirAsia Berhad says a forensic audit by its Indian joint venture AirAsia India Ltd (AAIL) has revealed serious issues involving former chief executive officer Mittu Chandilya.

The airline said he entered into a contract in September 2015 with LINK, a media company. This was to provide media services and sale of media space for publications in India and abroad.

An airline spokesperson said: “Investigations from the forensic audit revealed LINK had not rendered any services to AAIL. Yet, 22 invoices were raised by it and subsequently cleared by AAIL, amounting to Rs 100.6 million, on the instructions of and under the authority of Mittu Chandilya.” The company has filed a criminal complaint with the Bengaluru police. 

AirAsia Bhd’s spokesperson added that personal expenses amounting to Rs 16.3 million were paid from company funds by Chandilya. He had approved personal expenses such as family holidays, furniture, personal credit card bills, iPhone and personal staff salaries—all beyond his authorised limit of expenditure.

This is also part of the claim filed with the police. Further, a claim has been filed in a Bengaluru court to retrieve these payments. 

Mittu’s lawyer Srinivas Mohanty said, “The LINK contract was done by the local commercial team that reported directly to the commercial team of AirAsia Bhd, as mandated under the brand licensing agreement. Mittu had no role in it. Also, his personal expenses were cleared by Tony Fernandes (group chief) as he was his (Chandilya’s) reporting manager. Had the audit firm had a session with Mittu to verify the facts, they would have found the truth.” 

Mohanty says his client had already filed a petition in the Bengaluru civil court, questioning the maintainability of the Deloitte forensic report without permission of the company tribunal, as required under section 131A of the Companies Act. 

It has asked for rejection of the suit for recovery, filed by AirAsia India. The hearing will be next month, said Mohanty.