AirAsia India To Probe Claims Of Financial Irregularities

Budget carrier AirAsia India has confirmed that it is investigating some former employees over allegations of personal expense irregularities.

"There is an ongoing investigation against certain former personnel of AirAsia (India) Limited involving irregular personal expense claims and certain company charges,” the company said.

The statement added that AirAsia India, AirAsia Malaysia and Tata Sons “do not approve of any unethical practices and will take very stern action against the perpetrators at all levels of the organisation.”

The internal probe comes after former chairman Cyrus Mistry sent a letter to Tata on October 25 saying “A recent forensic investigation [into AirAsia India] revealed fraudulent transactions of Rs.22 crores (INR220 million rupees - USD$3.3 million) involving non-existent parties in India and Singapore.”

Tata Sons had removed Mistry as chairman the day before.

Tata had initially responded to Mistry’s letter saying “There is a multitude of records to show that the allegations made by Mr. Cyrus Mistry are unwarranted and these records will be duly disclosed before appropriate forums, if and when necessary.”

AirAsia India is a joint venture between Malaysia’s AirAsia and the Tata Group.