Aviation Ministry to look into Cyrus Mistry’s allegations of fraud at AirAsia; ‘law will take its own course’

The ministry's comments come a day after Mistry's allegations, contained in a confidential letter dated October 25, became public wherein he wrote about certain financial irregularities regarding AirAsia India, where Tatas are a partner, including a "fraudulent transaction" of Rs 22 crore.

By: PTI | New Delhi | Updated: October 28, 2016 4:03 pm
tata, tata group, tata group chairman, Cyrus Mistry, global economy, aglc, tata group business, cagr, indian express news, india news, business Cyrus Mistry, Chairman of Tata Group.

Hot on the heels of Tata Group’s ousted chairman Cyrus Mistry alleging fraudulent transactions at AirAsia India, the Aviation Ministry today said all issues would be looked into and “law of the land will have to be followed” in case of any violation. “Laws as per policies have to be followed. Whatever (issue) anybody raises, they will have to be looked into,” Civil Aviation Minister Ashok Gajapathi Raju told reporters.

The comments come a day after Mistry’s allegations, contained in a confidential letter dated October 25, became public wherein he wrote about certain financial irregularities regarding AirAsia India, where Tatas are a partner, including a “fraudulent transaction” of Rs 22 crore.

WATCH VIDEO: Following Cyrus Mistry’s Ouster, Tata Group To Shortlist Candidates For Next Chairman

 

Asked whether the ministry would take any action in this matter, Raju said: “If anyone violates laws, laws of the land will have to followed everywhere.”

He, however, did not give any direct reply about specific allegations made in Mistry’s letter which he had written soon after being ousted as Chairman of Tata Sons, the main holding company of over USD 100 billion conglomerate.

Read Also: Tatas hit back; ‘Cyrus Mistry fully empowered to lead, lost confidence of Board’

Raju said: “The regulator provides the licence. So that was the point of that time. If there are violations in it, the courts are there to look at it. Our concern here is that we should keep Indian skies vibrant. We have sustained a 20 per cent growth. Why should we put a stop to it. Laws as per policies have to be followed.

“Whatever anybody raises, they will have to be looked into.”

Earlier in the day, the ministry officials had said they are keeping a close watch on developments related to the purported disclosures made by Mistry about AirAsia India and will act if something actionable is brought to its notice.

“We are waiting for any input from any quarter,” Civil Aviation Secretary R N Choubey said, adding “we have not received anything so far”.

While another civil ministry official said: “If anything new is brought to the ministry attention, appropriate authorities will look into it”.

Mistry had raised “ethical concerns” in Tata group’s aviation joint venture with AirAsia and alleged that forensic investigation revealed fraudulent transactions of Rs 22 crore involving non-existent entities in India and Singapore.

He was removed abruptly as chairman of the Tata Group on Monday and replaced by his predecessor Ratan Tata, who will lead India’s biggest conglomerate for the next four months till a permanent replacement is identified by a specially-created committee.

Mistry’s family firm, Shapoorji Pallonji, is a construction major and one of the largest stakeholders in the Tata Group.

For all the latest India News, download Indian Express App now

  1. A
    Aiyer.Aiyer
    Oct 27, 2016 at 3:45 pm
    Excellent opportunity for the Aviation minister to fleece TATA.
    Reply
    1. S
      Seshadri.Venugopalan
      Oct 27, 2016 at 4:54 pm
      I have been in Tata for some time. They appoint brahmins recommended by brahmins in AW, IB, ED,IT and other agencies. This protects them from illegal IT raids, illegal concessions on tax, blind eye on their law violations, protection from legitimate union demands, intelligence sharing about union leaders and their real time activities, honey trapping the union leaders and providing henchmen contracted by above agencies to contain whistleblowers. lt;br/gt;lt;br/gt;The Brahmin CEOs in Tatas and many Keralite HRmanagers are all appointed by the BRAHMIN MAFIA and the KERALITE MAFIA in above agencies.
      Reply
      1. J
        Jp
        Oct 27, 2016 at 3:24 pm
        Misyry is a traitor..whether any irregularities or not ..the way mistry is behaving is unacceptable
        Reply
        1. W
          Wazir
          Oct 27, 2016 at 2:43 pm
          Mistry makes some solid points, why are commentators so negative on him. Is there anything wrong with what he is saying, Tata are crooked as the next conglomerate, what is the shocker? Ask the Italian
          Reply
          1. H
            Harikrishnan
            Oct 27, 2016 at 2:46 pm
            If indeed what Mistry says is true, what did he do in the last several years to improve the situation of the group and what was the result of such efforts?
            Reply
            1. A
              ashok s
              Oct 27, 2016 at 5:06 pm
              At least go to kindergarten and your mother will be happy before commenting
              Reply
              1. A
                ashok s
                Oct 27, 2016 at 5:08 pm
                Minister will do nothing . they blame vijay mallya , subrato Roy , etc . but same crimes where committed by tatas but government will do nothing.
                Reply
                1. P
                  p
                  Oct 27, 2016 at 4:40 pm
                  why did tata's have to buy british steel company when common sense and all market trends were showing that cheap chinese steel companies were driving all other steel companies out of business? Why start airline when in India it is mostly loss making enterprise? Instead of increasing the ries of employees of various tata companies, all the money was being wasted in these useless deals. TCS has been biggest cash cow of the Tata's and all the profit was being squandered in useless ventures like buying Corus Steel company, buying Jaguar/Land Rover automobile company from Ford while they were off loading loss making business, trying to sell Nano for less than what it took to manufacture them (and they were exploding all the time). What totally whimsical, irresponsible and dumb decisions? Why did they waste all their resources on unaffordable ventures? Why didn't they invest their profits on in-country Research and Development? Ratan Tata's vision is totally foolish, and I can't believe all the slavish mentality people lap it all up, and don't question anything.
                  Reply
                  1. S
                    sajeev
                    Oct 28, 2016 at 8:27 am
                    Forget where I work or scrub or at what level, but your comment definitely says a lot about you mate. Bad mouthing never subsutes reason.
                    Reply
                    1. S
                      sajeev
                      Oct 27, 2016 at 4:43 pm
                      1. When were the results of the forensic investigations received by Mr. Mistry? lt;br/gt;lt;br/gt;2. Why has he revealed the alleged fraud only after being sacked? lt;br/gt;lt;br/gt;3. Immaterial of whether fraud has actually occured, by making his letter of allegations public, Mr. Mistry has lost credibilty as a serious business leader. It was an immature act taken without evaluating alternatives to ensure corrective actions if required. Nor has he given thought to the impact it will have on the Group and its seven lakh employees.
                      Reply
                      1. Load More Comments