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Probing former execs for irregular expenses, says AirAsia India on Cyrus Mistry's allegations

by October 31, 2016 General
By: ENS Economic Bureau | New Delhi | Updated: November 1, 2016 1:40 am

AirAsia India, AirAsia, Cyrus Mistry, Tata group, AirAsia fraud, AirAsia fraudulent transactions, AirAsia probe, AirAsia fraud probe, tata news, business news AirAsia India is a joint venture company between Tata group, which own 51 per cent stake, and Malaysia’s AirAsia Berhad. (File)

Days after former Tata group Chairman Cyrus Mistry alleged fraudulent transactions at AirAsia India, the airline on Monday said that probe is going on against certain former executives for irregular personal expense claims and other company charges.

AirAsia India is a joint venture company between Tata group, which own 51 per cent stake, and Malaysia’s AirAsia Berhad.

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A day after being sacked as chairman of the Tata group, Mistry in a letter to Tata Sons Board on October 25 raised “ethical concerns” in AirAsia India and alleged that forensic investigation revealed fraudulent transactions of Rs 22 crore involving non-existent entities in India and Singapore. Mistry had said that Ratan Tata’s passion for airline had led the group to invest much more than originally planned in the joint venture. Mistry had said that “his pushback was hard but futile” as Ratan Tata had already concluded negotiations with Air Asia.

“There is an ongoing investigation against certain former personnel of AirAsia (India) Ltd involving irregular personal expense claims and certain company charges. This has already been reported to and discussed at the previous board meeting of AirAsia (India) Ltd,” the airline said in a statement, as per a PTI report.

AirAsia India also said that it would not make any specific reference to the matters being investigated at this stage as it may be prejudicial to the company or the personnel investigated.

The company and its partners AirAsia Berhad and Tata Sons look into all allegations of impropriety and misappropriation very seriously, it said. The three entities do not approve of any unethical practices and would take very stern action against the perpetrators at all levels of the organisation, the carrier said

“The three entities would like to reiterate that they strictly adhere to internal procedures and policies,” it added.

The government has said last week that it was keeping a close watch on developments related to the purported disclosures made by Mistry about AirAsia India and would act if something “actionable” is brought to its notice.

Civil aviation secretary RN Choubey had said the government for waiting for any input from any quarter but has not received anything yet.