AirAsia India Says Investigating Former Staff For Financial Irregularities

AirAsia India Says Investigating Former Staff For Financial Irregularities

Tata Sons owns 49% of AirAsia India.

New Delhi: AirAsia India is investigating certain former employees over irregular personal expense claims, the aviation joint venture of Tata Sons and Malaysian airline AirAsia Bhd said in a statement on Monday.

The announcement follows a letter sent last week by the ousted chairman of Tata Sons, which owns 49 per cent of AirAsia India, in which Cyrus Mistry said board members were aware of "ethical concerns" with respect to certain transactions.

He said a forensic investigation had found "fraudulent transactions" of Rs 22 crore ($3.29 million) involving "non-existent parties".

That letter prepared the ground for a "probe into the allegation of mismanagement of funds," said an official at the Enforcement Directorate, India's financial crime fighting agency.

AirAsia India said that together with parent AirAsia and Tata Sons, it would investigate allegations of impropriety and misappropriation.

"The three entities do not approve of any unethical practices and will take very stern action against the perpetrators at all levels of the organisation," the company said.
© Thomson Reuters 2016
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