Saturday, July 08, 2017

Bengaluru court orders attachment of former AirAsia India CEO Mittu Chandilya assets

Mumbai: A Bengaluru court ordered the attachment of property belonging to former AirAsia India CEO Mittu Chandilya following a complaint filed by the airline that accused him of fund diversion.

The court said in a June 29 order that moveable and immoveable property be seized until Chandilya appears before it. It also asked him to explain why he should not be asked to furnish security to the tune of Rs 24.32 crore. Chandilya didn’t respond to questions but an associate told ET he wasn’t guilty of any wrongdoing and was being needlessly dragged into the Tata group’s battle with ousted Tata Sons chairman Cyrus Mistry.

AirAsia India, promoted by Tony Fernandes’ AirAsia and the Tata Group, had sought recovery of the amount cited above at 18% interest from Chandilya from the date of its “siphoning” off till the date of actual payment.

The airline said Chandilya had been evading legal processes and had not appeared before the Enforcement Directorate, which issued a notice calling for an inquiry. Chandilya is said to be out of India.
ET reported on November 5 last year that a Deloitte Touche audit of AirAsia India appeared to show financial irregularities.

The initial findings suggested that Chandilya ordered payments to a Singaporebased entity for bogus services and to an Indian firm that didn’t exist in government records. The payments totalled about Rs 22 crore, the report said.

The person close to Chandilya said he was being made a scapegoat in the Tata-Mistry battle. He said Chandilya will file a counter suit and seek a hearing to set aside the ex parte order. The person said Chandilya could prove his innocence and that all transactions had the approval of the AirAsia India board.
08/08/17 Satish John/Economic Times

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