Enforcement Directorate (ED) has questioned AirAsia India’s Chief Financial Officer (CFO) in connection with an alleged forex violation case.
ED is probing ousted Tata Group Chairman Cyrus Mistry’s allegation that fraudulent transactions of Rs. 22 crore, involving non-existent entities in India and Singapore, were carried out in an instance involving the airlines.
Officials said the CFO, Ankur Khanna, was questioned by the investigating officer of the case earlier in the week and his statement was recorded under the provisions of the Foreign Exchange Management Act (FEMA).
There was no immediate comment from AirAsia India spokesperson.
ED had earlier issued summons to the airline and its officials to submit relevant documents and explain the matter to investigators as part of the probe.
They added that the CFO could be called for questioning again apart from few other executives.
The Enforcement Directorate (ED) probe is also looking at a specific transaction of Rs. 12 crore, out of Rs. 22 crore, made to a Singaporean firm.
ED officials said the agency is also examining the documents and findings of an in-house forensic investigation, as claimed by Mistry.
In October, flagging “ethical concerns” in Tata Groups joint venture with Air Asia, Mistry had claimed a forensic investigation had revealed fraudulent transactions of Rs. 22 crore involving non-existent entities in India and Singapore.
As a bitter war plays out between Mistry and Tata Groups interim Chairman Ratan Tata, the former had alleged that due to the latter’s passion for aviation, the Tata Sons Board increased capital infusion into the aviation sector at multiple levels of the initial commitment.
In a letter written to the Board members of Tata Sons a day after he was ousted on October 24, Mistry said, “Board members and trustees are also aware that in the case of Air Asia, ethical concerns have been raised with respect to certain transactions as well as overall prevailing culture within the organisation.”
“A recent forensic investigation revealed fraudulent transactions of Rs 22 crore involving non-existent parties in India and Singapore.”
Mistry went on to allege that “executive trustee Mr. Venkataraman, who is on the board of Air Asia and also a shareholder in the company, considered these transactions as non-material and did not encourage further study”.