New Delhi, May 30 (IANS) Allegations concerning indirect foreign control of AirAsia India Ltd (AAIL) allegedly in violation of Foreign Investment Promotion Board norms have been fully investigated by the Director General of Civil Aviation (DGCA) and the aviation regulator had given it clean chit in November 2017, the company said on Wednesday.
"The DGCA order was pursuant to an investigation exercise mandated by the Delhi High Court by its order on November 11, 2016 in Writ Petition (C) No. 1373 of 2014. The DGCA Order effectively ruled that the operations and management of AAIL was in accordance with FEMA, FDI Regulations and the FIPB approval granted to AAIL," the company said in a statement.
The CBI on Tuesday had named AirAsia Group CEO Tony Fernandes and others in a criminal case of 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, R. Venkataramanan, Director AirAsia, the AirAsia Group Deputy CEO T. Kanagalingam alias Bo Lingam.
"Furthermore, the DGCA order ruled that the terms of the Brand Licence Agreement (BLA) were meant only for ensuring uniformity of brand use and quality of services and that such terms are for benefit of passengers. The DGCA noted that the BLA is a common practice in the aviation industry," the airline said.
"In this backdrop, AAIL believes that to allege that control of AAIL is not in accordance with foreign exchange investment laws is incongruous," it added.
It further said: "AAIL will be co-operating with the relevant authorities to facilitate an early conclusion of this matter."
This website uses cookies.
