Things haven’t exactly been smooth for ex-Home and Finance Minister P. Chidambaram ever since the Congress’ oust from power in 2014 Lok Sabha elections. He and his family members have faced countless charges of taking kickbacks in the recent years. From the 2G spectrum case to the Saradha chit fund scam, the Chidambaram family have been pursued by the Income Tax and Enforcement Directorate. Their troubles began after the shielding they had received under the UPA II regime was lifted. The government agencies have decided to pursue every probable case of mismanagement and unaccounted earnings during Chidambaram’s tenure as the cabinet minister. Keeping in line with clampdown on people who had indulged in malpractices, the Central Bureau of Investigation has registered an FIR against AirAsia Group CEO Tony Fernandes and other associated persons who had a part to play in the alleged violation of norms for getting international flying license and other clearances. AirAsia is a joint venture of AirAsia Group from Malaysia and the Tata Group from India. The CBI has decided to pursue this case in order to find out the truth behind the allegations raised against AirAsia.
Republic TV, in an article, has claimed that they have gotten hold of exclusive information which will further increase problems for the then Foreign Investment Promotion Board and Finance Minister P. Chidambaram. According to the documents from Republic TV, it is understood that a meeting of the FIPB was conducted on March 6, 2013. The meeting was presided over by P. Chidambaram and the Civil Aviation Ministry officials had supported AirAsia’s investment proposal in principle but had asked for a few formalities that needed to be fulfilled to comply with the extant policy framework. The Civil Aviation officials wanted that the group should first set up the company, obtain an aviation license from the ministry and then go for foreign investment. The officials also mentioned that in case these instructions were not followed the Department of Industrial Policy & Promotion might have to issue a clarification that the policy change aimed at giving money to cash-starved airlines also applies to joint ventures that are yet to be incorporated.
According to Republic TV, the FIPB headed by P. Chidambaram decided to ignore the objections of the Civil Aviation ministry officials. Requests for clarifications from DIPP were also brushed off by the FIPB headed by P. Chidambaram.
The Republic TV article further alleges that they have gotten hold of information which suggests that a bribe of Rs 50 lakh was given in order to bypass the 5/20 rule. It was mandatory for an airline to have been flying for 5 years and have minimum 20 aircrafts in order to be eligible to operate on international routes, something which AirAsia did not have at that point of time. According to the Republic TV article, the CBI sources mention that a bribe was paid to government officials at a coffee shop in Mumbai to facilitate this deal.
This matter was first raised by BJP MP and senior leader Subramanian Swamy in the Delhi High Court. Subramanian Swamy had alleged that the FIPB clearance granted to AirAsia was illegal according to the rules at that time. Subramanian Swamy wanted P. Chidambaram to be prosecuted for approving an illegal project despite having knowledge of the illegal nature of the deal. He also cited then DIPP in-charge Anand Sharma who had said that rules had been bent to give clearances to AirAsia.
As per the CBI FIR, AirAsia Group CEO Tony Fernandes and others had lobbied with government officials for various clearances including the removal of 5/20 rule. The FIR also alleges that there was a criminal conspiracy “with intent to help M/S AirAsia(India) LTD. To expedite the approval process and change in aviation policies to suit the company.” The FIR also throws light on a Rs 12.28 crore rupees bribe which were transferred to a Singapore based company for a “sham contract on the basis of a bogus agreement on plain papers, which was utilized for paying bribes to unknown public servants of Government of India and others for securing permit for operation of international scheduled air transport services.”
This FIR will further worsen the crisis for the Chidambarams who are already facing huge troubles. His image and reputation in the country has suffered a major setback and the further tightening of the CBI noose on their activities might hurt them furthermore. Subramanian Swamy should be praised for bringing into notice this kind of illegal practise conducted under the Congress led UPA II regime.
