Monday, October 31, 2016

ED to investigate Cyrus Mistry's AirAsia fraud allegations

Amidst the blamegame between Tata Sons and its ousted chairman Cyrus Mistry, the Enforcement Directorate (ED) has decided to probe the fraud allegation made by the ex-chairman, according to a report in India Today.

In a five-page long letter sent to the company board members and Tata Trust trustees, on Tuesday, Mistry had claimed that a "recent forensic investigation revealed fraudulent transactions of Rs 22 crore involving non-existent parties in India and Singapore." He was talking about fraudulent transactions in one of Tata Group's two aviation ventures, AirAsia.

He had also stated,"Executive trustee, Venkatraman, 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. It was only at the insistence of independent directors, one of whom immediately submitted his resignation, that the board decided belatedly to file a first information report (FIR)".
30/10/16 DNA