Swamy moves Delhi HC seeking to set aside Air India disinvestment process

BJP leader Subramanian Swamy has approached the Delhi High Court seeking to quash the Air India disinvestment process and set aside the approvals given to it by authorities.

A bench of Chief Justice D N Patel and Justice Jyoti Singh is scheduled to hear the petition on Tuesday.

Swamy, a Rajya Sabha MP, has sought to set aside and revoke any action or decision or grant of any further approvals, permissions or permits by the authorities with respect to the present Air India disinvestment process.

Swamy, through advocate Satya Sabarwal, has also sought for a CBI investigation into the role and functioning of authorities and submission of a detailed report to the court.

In October last year, the central government accepted the highest bid made by a Tata Sons company for 100 per cent equity shares of Air India and Air India Express along with its 50 per cent stake in ground-handling company AISATS -- the first privatisation in 20 years.

On October 25 last year, the government had signed the share purchase agreement with Tata Sons for the sale of national carrier Air India for Rs 18,000 crore. Tatas would pay Rs 2,700 crore cash and takeover Rs 13,500 crore of the airline's debt.

Tatas beat the Rs 15,100 crore offer by a consortium led by Spicejet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier.

As of August 31, 2021, Air India had a total debt of Rs 61,562 crore. 75 per cent of this debt or Rs 46,262 crore will be transferred to a special purpose vehicle AIAHL before handing over the airline to the Tata group.