AirAsia begins probe over fraudulent transactions worth Rs 22 crore after Cyrus Mistry raises red flag

AirAsia said strict actions will be taken against anyone who will be found guilty in the probe regarding irregular transaction at the airlines. Tata Sons ousted Chairman Cyrus Mistry had raised this issue and an investigation has been launched in this regard. Probe is going on against former personnel regarding the irregular expense claims and certain company charges.

The airline, in a statement, stated its parent groups don’t approve of any unethical practices and it "will take very stern action against the perpetrators (of fraud) at all levels of the organisation". The matter has already been discussed by the board at the previous meeting.

Cyrus Mistry, after he was ousted as the chairman of Tata sons, in a letter to Tata Sons board said that an investigation had revealed a fraudulent transaction of 22 crore related to AirAsia and involving non-existent entities in India and Singapore.

Tata Group however countered the allegations. "It is unfortunate that it is only on his removal that allegations and misrepresentation of facts are being made about business decisions that the former chairman was party to for over a decade in different capacities. The record, as and when made public, will prove things to the contrary," the group had said.

In a statement, AirAsia confirmed that the group has looked into all the allegations of impropriety and misappropriation very seriously.

In a parallel space, a letter has been written to the Prime Minister Narendra Modi by BJP MP Subramanian Swamy, in which he has asked him to form a special investigation task force to probe the issue in Mistry’s letter.

The Civil Aviation Ministry has also said that they were looking into the issue. "We are waiting for inputs to be provided from any quarter. We have not received anything yet," Aviation Secretary RN Choubey told reporters last week.
(image:Indiatimes)