AirAsia FIR reveals conspiracy to circumvent rules for obtaining international flying license; names R Venkataramanan, Ratan Tata’s aide

Moneylife Digital Team 29 May 2018

Economy & Nation

The Central Bureau of Investigation (CBI) has registered a case against several top executives of AirAsia, including the company's director R Venkataramanan, who owns a 1.5% stake in the airlines and AirAsia group CEO Tony Fernandes, a Malaysian billionaire, for allegedly trying to circumvent rules to get an international flying license for the carrier. Mr Venkataramanan is a close aide of Ratan Tata.

During a Board meeting on 24 October 2016, Cyrus Mistry, former chairman of Tata Sons had planned to expose the fraudulent transactions by tabling the explosive findings of a forensic audit done by Deloitte on AirAsia. But he was sacked. The Tata group has never revealed the reason. Interestingly, one day before his removal, Mr Venkatramanan had instructed the then Group legal counsel to not file an FIR against the former CEO of AirAsia India in an email as per the documents submitted by Mistry Firms at National Company Law Tribunal (NCLT).

According to a CBI spokesperson RK Gaur, searches were being held in multiple locations in Delhi, Mumbai and Bengaluru in connection with the case.

In a statement, AirAsia India refuted any wrong-doing and said 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. We hope to bring early an resolution to all such issues,”Shuva Mandal – Director, AirAsia India said.

According to the FIR (copy below), R Venkatramanan was involved in lobbying with stakeholders in the Indian Government to secure mandatory approvals, some of them through non-transparent means, including the then Foreign Investment Promotion Board (FlPB) clearance, no objection certificate (NOC) and the attempt for removal or modification of the 5/20 rule. The 5/20 rule required an airline to have a minimum of five years of flying and 20 aircraft to apply for international licenses.

"Information has further revealed that the controllers of AirAsia (lndia) Anthony Francis Fernandes and Bo Lingam pressurized their CEO Mrithyunjay Chandilya to pursue the matter regarding the change of the then regulatory policies for international aviation in India, suitable to them," the FIR says.

The FIR mentions about Rs12.28 crore paid to HNR Trading Pte Ltd of Singapore by AirAsia India in a 'sham contract' and the money was used to pay bribe to government officials in India to secure a permit for operational scheduled air transport services. "... in furtherance of the said criminal conspiracy' during the year 2015-16, AirAsia (lndia) remitted about Rs12.28 crore to HNR Trading Pte Ltd, Singapore for a sham contract on the basis of a bogus agreement on plain paper, which was utilised for paying a bribe to unknown public servants of Government of lndia and others for securing the permit for operation of international scheduled air transport services through Deepak Talwar of DTA Consulting and Sunil Kapur, Chairman, Travel/Total Food Services, who acted as lobbying agents. Mr Talwar in his presentation mentioned about the strategy to engage with officials of several Ministries including the agenda for the removal of the then 5/20 rule for which a payment of Rs17.43 lakh was made to him."

Deepak Talwar has been raided multiple times from 2016. Last year, the Enforcement Directorate conducted multiple searches in Delhi and Haryana in connection with a case of alleged money laundering against the aviation consultant, an NGO linked to him, and others for allegedly "misutilising" over Rs90 crore funds taken through foreign funding route, says a report from the Business Standard.

Violating FIPB guidelines, through a 'brand license agreement', the AirAsia group of Malaysia was indirectly controlling AirAsia India from day one, the FIR says.

Others named in the FIR include, Tharumalingam Kanalingam (BO Lingam) (Deputy Group CEO of AirAsia Berhad), Rajender Dubey (Director of HNR Pte Ltd), Sunil Kapur (Chairman of Travel/Total Food Services), Deepak Talwar (Principal & Founder of DTA Consulting), HNR Pte Ltd, AirAsia India Ltd, AirAsia Berhad, and some unknown government officials from the Ministry of Civil Aviation and FIPB.

AirAsia India is a joint venture between Tata Sons Ltd (49%) and Malaysian carrier AirAsia, Berhad (49%), while its Chairman S Ramadorai and R Venkararamanan, hold 0.5% and 1.5% stake, respectively.

Here is the copy of the FIR...

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