ED summons AirAsia CEO Tony Fernandes
In this article (4)
The Enforcement Directorate has summoned AirAsia chief executive officer (CEO) Tony Fernandes on 20 January in an ongoing probe against the airline. Summons have been issued to the entire top brass of the airline, both past and present, under the Prevention of Money Laundering Act (PMLA).
The action against Fernandes comes more than a year after both the ED and the Central Bureau of Investigation (CBI) launched their respective probes in alleged financial irregularities and criminal misconduct when the airline was lobbying to obtain its license for its Indian operations.
In May 2018, the ED had filed a case of money laundering against AirAsia officials and others for allegedly trying to manipulate government policies through corrupt means to get international license for its Indian venture — AirAsia India Limited.
In June 2018, the ED widened its probe into the AirAsia money laundering case after collecting documents from the Ministry of Commerce and Industry related to foreign direct investment (FDI) clearances given to the airline.
The probe agency had pressed charges under the PMLA to probe the trail of funds that were allegedly used to create illegal assets, following the case registered by the CBI against the airline and Fernandes.
The CBI had searched offices of AirAsia India and filed a complaint against Fernandes for allegedly lobbying the government for overseas flight permits and violating rules that prevent foreign airlines from controlling Indian operators.
CBI’s first information report stated that the violations occurred from 2013 to 2016, before the government eased restrictions on Indian airlines starting overseas flights in June 2016.
The AirAsia spokesperson was not available for comment on the matter.
Questions & Answers
Q.Why has Tony Fernandes been summoned by the Enforcement Directorate?
Why has Tony Fernandes been summoned by the Enforcement Directorate?
He has been summoned in an ongoing probe against the airline. Summons were issued to the entire top brass under the Prevention of Money Laundering Act (PMLA) regarding alleged financial irregularities and criminal misconduct related to obtaining the airline's Indian license.
Q.What specific allegations are being investigated by the Enforcement Directorate?
What specific allegations are being investigated by the Enforcement Directorate?
The ED is investigating alleged attempts to manipulate government policies through corrupt means to obtain an international license for AirAsia India Limited. They are also probing the trail of funds allegedly used to create illegal assets.
Q.What role has the CBI played in the investigation of AirAsia?
What role has the CBI played in the investigation of AirAsia?
The CBI launched its own probe alongside the ED, searching AirAsia India offices and filing a complaint against Fernandes. They allege he lobbied the government for overseas flight permits and violated rules preventing foreign airlines from controlling Indian operators.
Reader pulse
What is the biggest risk for AirAsia?
18,294 votes so far