Enforcement Directorate on Wednesday registered a case against Air Asia under Foreign Exchange Management Act (FEMA) on the allegation transaction of Rs 22 crores. The allegations were made by ousted Tata Group Chairman Cyrus Mistry. The airlines has been summoned by the agency. However, Air Aisa denied receiving any summon from the ED. “We have not received any official communication yet. If and when we do, the company will take appropriate steps,” Air Asia said. The probe will also look at a specific transaction of Rs 12 crore, out of Rs 22 crore, made to a Singaporean firm. As per the officials, the agency would first go into the documents and findings of an in-house forensic investigation.
Earlier, Mistry had claimed that a forensic investigation had revealed fraudulent transactions of Rs 22 crore involving non-existent entities in India and Singapore.
Former, in a series of allegations, said that Tata Sons Board had to increase capital infusion into the aviation sector at multiple levels of the initial commitment due to Ratan Tata’s ‘passion for aviation’.
In a letter written to the Board members of Tata Sons, a day after he was ousted on October 24, Mistry said, “Board members and trustees are also aware that in the case of Air Asia, ethical concerns have been raised with respect to certain transactions as well as overall prevailing culture within the organisation. A recent forensic investigation revealed fraudulent transactions of Rs 22 crore involving non-existent parties in India and Singapore.”
Mistry went on to allege that “executive trustee Mr Venkataraman, who is on the board of Air Asia and also a shareholder in the company, considered these transactions as non-material and did not encourage further study”.
With PTI Inputs