Alleging irregularities in the FIPB approval and guidelines in civil aviation sector, Janata Party president Subramanian Swamy on Wednesday urged Prime Minister Manmohan Singh to review the permissions given to the AirAsia deal.
In a letter to the Prime Minister, Swamy said that the FIPB approval would lead to the collapse of domestic airline industry as well as the national carrier Air India.
Swamy said the present norms only permit foreign airlines to invest in existing domestic airlines. The Malaysian airline was allowed to invest in Indian companies, which are not existing operators in civil aviation sector. He also said that no consultation took place with the Defence Ministry.
“It is noteworthy to point out that media reports confirm that JV partners of AirAsia (India) Pvt are Tata Sons ltd and Telstra Tradeplace Pvt ltd. They are only strategic investors and are neither a part of existing operating scheduled airlines in India nor involved in any manner in the civil aviation sector. Therefore it becomes imperative that while evaluating, the Government must apply the doctrine of ‘piercing the corporate veil’, as has been used in foreign jurisdictions to identify and establish whether such ‘substantial ownership’ and ‘effective control’ is followed in letter and spirit,” said Swamy in his letter.
last month Swamy had objected to the Jet-Etihad deal and bilateral agreement with Abu Dhabi-based operators.