Chennai: Senior executives of AirAsia India had complained to the company board and Tata Group about lapses in business practices but these had been ignored, according to a report in the Economic Times.
The two major complaints highlighted were that AirAsia India was being “run” by Malaysian parent AirAsia Bhd, in contravention of Foreign Direct Investment rules, and that the Indian venture was being “overcharged” by the Malaysian company.
An internal investigation is being conducted by the board following a claim by axed Tata Sons chairman Cyrus Mistry that an audit found “fraudulent transactions”.
According to India’s rules, foreign airlines can own up to 49 per cent in domestic airlines but effective management control must remain with the Indian partner, said the ET report.
Tata Sons, the holding company of the Tata group, and AirAsia Bhd of Malaysia own 49 per cent each in AirAsia India. AirAsia India chairman S Ramadorai and director R Venkataramanan own the remaining 2 per cent.
08/11/16 Free Malaysia Today
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The two major complaints highlighted were that AirAsia India was being “run” by Malaysian parent AirAsia Bhd, in contravention of Foreign Direct Investment rules, and that the Indian venture was being “overcharged” by the Malaysian company.
An internal investigation is being conducted by the board following a claim by axed Tata Sons chairman Cyrus Mistry that an audit found “fraudulent transactions”.
According to India’s rules, foreign airlines can own up to 49 per cent in domestic airlines but effective management control must remain with the Indian partner, said the ET report.
Tata Sons, the holding company of the Tata group, and AirAsia Bhd of Malaysia own 49 per cent each in AirAsia India. AirAsia India chairman S Ramadorai and director R Venkataramanan own the remaining 2 per cent.
08/11/16 Free Malaysia Today
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