Wednesday, January 25, 2017

Tata group legal counsel had flagged concerns on AirAsia in 2015

Mumbai: As early as 2015, the then AirAsia India board member Bharat Vasani, had flagged his concerns on the lack of governance issues to top bosses of the carrier that includes “large scale legal and regulatory violations”. In a series of e-mails sent to the airline company, Vasani had also warned of exposing directors to criminal liability and damage of reputation to the group.

“I am being forced to continue on the board of the company, where despite my daily instructions, no steps are being taken by the management to rectify the situation. There are large scale legal and regulatory violations in the company and no steps are taken by the management to rectify them,” said an e-mail sent on March 13, 2015.

“Under these circumstances, I am left with no other alternative but to resign from the board with immediate effect,” the letter, which was reviewed by BusinessLine, said. The letters are also part of the fresh response filed by Mistry camp before the National Company Law Tribunal (NCLT), responding to Tata Sons’ affidavit.

AirAsia India is a firm floated by Malaysian low-fare carrier AirAsia Bhd and Tata Sons and the companies hold a 49 per cent stake each in the carrier. AirAsia India Chairman S Ramadorai and director R Venkataramanan own the remaining 2 per cent in the company.

The letter was also copied to Ramadorai, Venkataramanan, Tata Sons then chairman Cyrus Mistry and former AirAsia India Managing Director and Chief Executive Officer Mittu Chandilya.
25/01/17 Business Line