Ratan Tata is the interim chairman of Tata Sons after Cyrus Mistry was removed from the post. Photograph: (AFP)
Mistry's letter to Tata Sons had mentioned the forensic report that brought to fore fradulent transactions in the company
Days after the ouster of Cyrus Mistry as chairman of Tata Sons, a can of worms seems to have opened thanks to the leaked letter of Mistry to the company's board of directors.
The Federation of Indian Airlines (FIA) has now sought a stay on the operational clearance granted to Air Asia India Pvt Ltd (AAIPL) which is joint venture between Air Asia and Tata Sons.
The FIA has asked the apex court to direct the Delhi High Court to expedite the hearing of this matter. A bench of judges are likely to hear the plea post their Diwali break.
Mistry's letter to the board of directors had mentioned the forensic report that brought to fore fradulent transaction in the company that involved non-existent parties in India and Singapore. When brought to the notice of the Air Asia board, it considered the tranactions as "non material". The letter highliighted that the board "belatedly" filed a police report following these claims.
The FIA has accused AAIPL of misgovernance and fraud claiming that the effective control of AAIPL "lies with the foreign partner Air Asia".
India's ministry of civil aviation is likely to file a detailed affidavit in this regard in the Delhi High Court within the next fortnight, sources close to the development told WION.