The Supreme Court on Friday asked the Delhi High Court to decide on BJP leader Subramanian Swamy’s petition on the controversial FIPB approval on Malaysia-based flight operator Air Asia’s joint venture with Tata as early as possible. However, the SC refused to pass any interim order on the matter, seeking the Centre to refrain from granting further approvals on the deal.
A bench comprising justices BS Chauhan and AK Sikri, however, made it clear that the Centre’s decision on the joint venture will be “subject to the outcome of the case pending in the Delhi High Court”. Swamy has moved the apex court against the February 11 order of the High Court by which his two interim applications seeking a stay on grant of further approvals to operationalise the deal were rejected.
The High Court, which has fixed the PIl for hearing on March 5, had said that the Centre was not “precluded” from “amending or clarifying” its FDI policy on aviation sector. Swamy’s PIl opposed clearance to the deal on the ground that according to government policy, foreign direct investment (FDI) up to 49 per cent is allowed in existing airlines which are already in operation and not to new or proposed joint ventures.
According to the consolidated FDI policy, effective from April 10, 2012, no foreign airline was allowed to participate “directly or indirectly in the equity of an Air Transport Undertaking engaged in operating Scheduled and Non Scheduled Air Transport Services except Cargo airlines,” he had said.