ED may investigate AirAsia case; Venkataramanan denies any wrongdoing

The Enforcement Directorate (ED) has sought from the Central Bureau of Investigation (CBI) details of the case of alleged corruption filed against top executives of AirAsia, according to ED sources.

“We will analyse the case registered by the CBI to see if a fresh case has to be filed by us or what further action we can take,” said an ED official. The CBI on Tuesday named AirAsia Group CEO Tony Fernandes and Tata Trusts’ R Venkataramanan for allegedly trying to subvert aviation laws for their joint venture AirAsia India by bribing government officials.

The ED is already probing corporate lobbyist Deepak Talwar, the middleman named in the CBI FIR, in a case of alleged money laundering and had raided several premises linked with him a week ago.

Both AirAsia and Venkataramanan have denied the charges, saying the accusations were made with mala fide intention and will be defended in court.

Venkataramanan, whom the CBI is investigating with several others for allegedly lobbying to get aviation rules relaxed for AirAsia India with kickbacks to officials, said the accusations against him found their roots in the allegations made by former Tata Sons chairman Cyrus Mistry and Shapoor Pallonji Group against the trustees of Tata Trusts, including him, and Tata Sons. 

“Emails purportedly written by me have been circulated in the media in the context of the issue of 5/20 (rule) in the aviation sector. This has been a much debated policy matter and AirAsia India was one of the many airlines that had formally sought a review of this policy,” he said in a statement. Venkataramanan is the managing trustee of the Sir Dorabji Tata Trust and is responsible for the management and oversight of all the Tata Trusts.

 AirAsia India also refuted the charge that the airline was being controlled by AirAsia Bhd in violation of foreign direct investment (FDI) norms. The airline said that in 2017, aviation regulator DGCA had given a clean chit regarding this.
“Allegations concerning indirect foreign control of AirAsia India 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. 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,” the airline said. 

The CBI had alleged in the FIR that AirAsia India was made a de-facto subsidiary of AirAsia Bhd in violation of FDI norms.

Meanwhile, the civil aviation ministry said it would fully cooperate and provide all assistance to the CBI in the investigation into the matter.