CBI summons AirAsia CEO Tony Fernandes in licence grant matter

Agency quizzes alleged lobbyist Rajender Dubey

Investigating agencies have widened their probe into the grant of an international flying licence to AirAsia India, a joint venture between AirAsia Bhd of Malaysia and Tata Sons.

According to a Central Bureau of Investigation (CBI) official, the agency has summoned the airline’s group CEO, Tony Fernandes, in connection with the alleged violation of aviation policies to obtain approvals to fly international.

“He (Tony) has been asked to appear before the agency to record his statement on June 6. The questioning will be on the evidence that indicate that the top brass of AirAsia violated India’s foreign direct investment rule to obtain the licence and also allegedly bribed some government officials to ease the regulatory compliance, which would allow the airline to fly on International routes,” the official said.

On Friday, the CBI quizzed Rajender Dubey, director of Singapore-based HNR Trading, for allegedly being the prime lobbyist who used his influence to get an exemption in the 5/20 rule before the 2014 Lok Sabha election. Sources said Dubey was instrumental in facilitating meetings for AirAsia executives with the ministry concerned.

The move follows the case registered by the central agency earlier this week. The CBI named Fernandes, former deputy group CEO Bo Lingam, and R Venkataramanan, director, AirAsia and managing trustee, Tata Trusts, among others. The first information report also named AirAsia and its Indian arm as accused in the case. All were booked on the charge of criminal conspiracy under the Indian Penal Code, besides sections of the Prevention of Corruption Act.

The CBI’s action of summoning Fernandes came because the agency believes it has got clinching evidence that AirAsia availed of the service of corporate lobbyist Deepak Talwar’s firm DTA Consulting to influence government officials. According to the contract signed between Talwar’s firm and AirAsia, DTA Consulting lobbied to get more bilateral flying rights for AirAsia Bhd and obtain commercially viable slots at airports. “DTA will develop and put in action a focused public affairs plan aimed at achieving an outreach and relationship building with key stakeholders of AirAsia as a positive contributor to the Indian aviation sector,” says the contract signed in May 2013. For this, DTA was allegedly paid around $34,500 by AirAsia.

Sources said the CBI had conducted search operations on Venkataramanan on May 29 and seized his digital belongings from the office. He was charged with lobbying in the government to secure mandatory approvals, some of them through “non-transparent means”, including the then Foreign Investment Promotion Board clearance. In its FIR, the CBI alleged that he obtained a no-objection certificate and attempted at removal or modification of the 5/20 rule. 

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With inputs from Arindam Majumder