Mistry''s disclosures: Aviation Ministry to look into issues

New Delhi, October 27

The Civil Aviation Ministry said on Thursday that it would look into former Tata Group's chairman Cyrus Mistry’s allegations of fraud in transactions at AirAsia India.

"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.

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 dismissed from the position of chairman of Tata Sons, the holding company of over $100 billion conglomerate.

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.”

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 RN Choubey, although he said they have yet to receive any.

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 dismissed abruptly 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 Tata Group. — PTI