AirAsia India denies 'wrong-doing' as CBI probes Group CEO
New Delhi, May 29: AirAsia India (AAIL) on Tuesday refuted any "wrong-doing" after the CBI registered a case against its Group CEO Tony Fernandes on alleged attempt to tweak rules to get an international flying licence for the airline.
According to the airline, it is co-operating with all regulators and agencies to present the correct facts.
"In November 2016, AAIL had initiated criminal charges against its ex-CEO and had also commenced civil proceedings in Bangalore for such irregularities," AirAsia India's Director Shuva Mandal said in a statement.
"We hope to bring early resolution to all such issues."
The airline's defence comes after the Central Bureau of Investigation (CBI) on Monday registered a case against the Malaysian billionaire.
The investigation agency on Tuesday conducted searches at five locations in Delhi, Mumbai and Bengaluru in connection with the case.
"A case has been registered against Fernandes and some other unidentified persons linked to the firm (AirAsia India)," CBI spokesperson R.K. Gaur said.
Gaur said Fernandes had lobbied and was trying to violate rule 5/20 that requires an airline to have a minimum of five years of flying experience and 20 aircraft to apply for international licences.
Interestingly, in 2016, the 5/20 norm was amended. Currently, a domestic airline requires 20 aircraft to apply for international flight rights.
The CBI has named Fernandes and others in a criminal case for violating FDI norms in giving effective management to a foreign entity through FIPB clearance in 2013 and attempt to bribe for tweaking rules to get a licence for its joint venture to operate international flights.
The CBI FIR also names "unknown public servants" of the Civil Aviation Ministry, the then Foreign Investment Promotion Board (FIPB), R. Venkataramanan, Director AirAsia, and AirAsia Group Deputy CEO T. Kanagalingam alias Bo Lingam.
The FIR also alleges that in December 2014, Sunil Kapoor, who runs an in-flight catering company, along with Bo Lingam handed over a packet containing Rs 50 lakh to facilitate removal of the rule that required five years' domestic flying experience and 20 aircraft to get a licence to fly internationally.
The CBI said it had received information that AirAsia India was indirectly controlled and operated by the AirAsia Group and particularly AirAsia Berhad, violating the norms of the then FIPB.
This structure was directly formalised through a "Brand Licence Agreement" signed by AirAsia represented by Fernandes and AirAsia Berhad represented by Bo Lingam on April 17, 2013, which indirectly made AirAsia India a de facto subsidiary rather than a joint venture.
As per the then FDI policy, foreign airlines were allowed to own up to 49 per cent of share in domestic airlines but effective management control must remain with the Indian partner.
Bharatiya Janata Party Rajya Sabha member and former Union Minister Subramanian Swamy tweeted: "Finally the CBI is presently raiding AirAsia offices including of the CEO's. It is arising from my PIL in Delhi HC."
Currently, the Delhi High Court is hearing a case filed by Swamy against the grant of a flying licence to AirAsia India.
AirAsia (India) is a joint venture between Tata Sons and AirAsia Berhad, with AirAsia Investment.
The budget carrier commenced operations on June 12, 2014 and currently flies to 20 destinations across India with a fleet size of 18 A320 aircraft.
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BJP leader Ashoka slams Siddaramaiah for asking people to support son in Varuna segment
Bengaluru (PTI): Taking a dig at Karnataka Chief Minister Siddaramaiah for calling on the people of his Varuna assembly segment to support and nurture his son Yathindra, just as they did to him, senior BJP leader R Ashoka on Saturday asked whether this was a monarchy to announce a successor.
The Leader of the Opposition also termed it a "bad" development in state politics.
"Siddaramaiah gives speeches claiming that he is a socialist and not a casteist or a nepotist. Yesterday, he asked people to nurture his son politically. All these years, they nurtured him, now his son, and next he will come in six months with a similar request for his grandson. Is this monarchy to announce a successor," Ashoka asked.
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Speaking to reporters here, he said Siddaramaiah seems to have abandoned Ambedkar's principles.
"One has to win through ballots in politics....such appeals in politics will be an offence to the principles with which Ambedkar drafted our Constitution. It is surprising that Siddaramaiah has made such a statement. This is not good for state politics," he added.
Addressing a gathering at his Varuna constituency in Mysuru on Friday, Siddaramaiah said he will remain in politics till his "last breath" and will continue to serve the people as much as he can. He also called on the people of the segment to support and nurture his son and Congress MLC Yathindra politically, just as they supported him.
The opposition leader also took a dig at "dinner parties" within the Congress amid the ongoing power struggle between Siddaramaiah and his deputy D K Shivakumar's camps and speculation about a leadership change, stating that "this is a dinner party government."
"They are not worried about the difficulties faced by the state's people. They are only concerned with who will hold the chief minister post and maintain power. This is betrayal to the people of the state," he added.
Reacting to Ramanagara Congress MLA Iqbal Hussain criticising the state budget presented by Chief Minister Siddaramaiah last week, Ashoka claimed that a number of other ruling party legislators are also unhappy with the Budget, as it did not meet their expectations.
"Hussain has only expressed the opinion of other Congress MLAs. He has spoken the truth. I compliment him," he added.
Responding to a question, Ashoka urged the state government to take action against those indulging in hoarding and black marketing of LPG cylinders amid supply constraints caused by the West Asia conflict.
Pointing out that the supply issues have arisen due to conflict, he said, "Those trying to blame the Centre for the gas crisis should understand this. They should suggest alternatives to address the supply issue caused by the war."
Appealing to the people of the state to cooperate in the current situation, Ashoka hit out at CM Siddaramaiah for doing politics on the issue that has arisen due to the war in the Middle East.
