CBI books Air Asia CEO Tony Fernandes

The CBI has registered an FIR against Air Asia Group CEO Tony Fernandes and others for alleged violation of norms in getting licences for international operations.

The case pertains to allegations of getting relaxation from the 5/20 rules of the Ministry of Aviation for procuring licences and also from the Foreign Investment Promotion Board rules.

It is also alleged that accused persons paid money that was used to pay bribes to known public servants and others for securing permit for the operation of international scheduled air transport services.

“Effort was also allegedly made in the Civil Aviation Ministry to remove or amend the 5/20 rule ahead of the 2014 elections. However, they could not do so then and did not get a licence foe international operarion,” said a CBI official. They, however, got the air operating permit in May 2014, for which they had applied in 2013.

A secret cabinet note had been moved to either repeal or amend the rule. However, it could not be done as the Election Commission had announced the poll schedule in March 2014, according to the FIR.

Under the 5/20 rule, licence for international operations used to be given only when an airlines had five years of domestic flying experience and a fleet of at least 20 aircraft.

Those named as accused are Group CEO of AirAsia Malaysia Anthony Francis “Tony” Fernandes, Air Asia, Travel Food owner Sunil Kapoor, Air Asia director R. Venkatraman, aviation consultant Deepak Talwar and director of Singapore-based SNR Trading Rajendra Dubey.

Total Food Services (Mumbai) Sunil Kapoor, supplier to the airlines, aviation consultant Deepak Talwar of DTA Consulting (Delhi), HNR Pte, Air Asia India and Air Asia Berhad have also been arraigned, the agency said.

“Searches are under way at five places in Delhi, Mumbai and Bengaluru,” the official said.

The CBI has alleged that FIPB norms were violated by the Air Asia group in giving effective management control to a foreign entity by making Air Asia India a de-facto subsidiary indirectly rather than a joint venture.

“Air Asia India used several persons, including Mr. Dubey and Mr. Talwar, at the instance of the group controller and BO Lingam in lobbying with the unknown Civil Aviation Ministry officials to get favourable orders,” the official said.