Aviation

ED summons AirAsia India’s ex-chief

MUMBAI: The Enforcement Directorate has summoned AirAsia India’s former CEO Mittu Chandilya in relation to a case registered against the airline on financial bungling and foreign management control.

“A summon was sent to him recently. He has two weeks to respond,” said a senior official at the ED, a finance ministry body responsible for enforcing economic laws and fighting economic crime in India, on March 6.

He added the summons are part of a case that has been registered against AirAsia India on violation of the Foreign Exchange Management Act (FEMA),1999.

The act was formulated to regulate foreign exchange deals and overseas investments in the country. AirAsia India is a joint venture between Tata Sons and Malaysia’s AirAsia Berhad.

The airline has been in the centre of controversy since last October, when a forensic investigation by Deloitte alleged fraudulent transactions worth Rs 22 crore, directed by Chandilya with fictitious companies in India and Singapore. The report also alleged lobbying and vendor favouritism under Chandilya.

The findings were first revealed by Tata Sons’ former chairman Cyrus Mistry in a letter to shareholders shortly after he was ousted from the position in October.

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