Following preliminary investigation, the Enforcement Directorate (ED) registered a case under the Foreign Exchange Management Act (FEMA) to probe the alleged fraudulent transactions of Rs 22 crore involving AirAsia. The ED has issued summons to officials of Air Asia in connection with alleged violations under FEMA.
Bharatiya Janata Party MP Subramanian Swamy had written to ED in November, seeking a probe into one of the allegations raised by Cyrus Mistry in a letter sent to the board members and Tata Trust trustees. Mistry had claimed that a “recent forensic investigation revealed fraudulent transactions of Rs22 crore involving non-existent parties in India and Singapore.”
In his letter to ED chief Karnail Singh, Swamy cited Mistry’s letter and stated that the transaction of Rs22 crore payment made to Air Asia (Bhd) of Malayia and needs to be probed for money laundering under the PMLA. He alleged that it was a bribe routed through hawala route “for unknown reasons in the transactions to setup the illegal Air Asia (India) aviation company.”