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Business News/ Politics / Policy/  Delhi high court special bench to hear pleas against Tata-AirAsia deal
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Delhi high court special bench to hear pleas against Tata-AirAsia deal

Bench to hear pleas by the Federation of Indian Airlines and Subramanian Swamy seeking quashing of approvals to operationalize the $30 million deal

Tata-AirAsia is a joint venture between Tata Sons and Malaysia-based AirAsia. Photo: AFPPremium
Tata-AirAsia is a joint venture between Tata Sons and Malaysia-based AirAsia. Photo: AFP

New Delhi: The Delhi high court on Thursday decided to constitute a special bench to hear pleas seeking quashing of approvals being granted by the centre to operationalize the $30 million deal between Tata Sons and Malaysia-based AirAsia.

Chief justice G. Rohini said a special bench comprising herself and justices Pradeep Nandrajog and Rajiv Sahai Endlaw will start hearing the petitions, that also include a PIL filed by Bharatiya Janata Party (BJP) leader Subramanian Swamy, on 11 July.

In a brief hearing, the bench was informed that pleadings in the matters have been completed and now they can be listed for final hearing. Besides Swamy, Federation of Indian Airlines (FIA) has filed two separate petitions challenging the approvals being granted to Tata-AirAsia and Tata-SIA Airlines deals, respectively.

Tata-SIA Airlines Ltd is a joint venture between Tata and Singapore-based SIA Airlines and Tata-AirAsia is a joint venture between Tata Sons and Malaysia-based AirAsia.

Earlier, the court had allowed Swamy’s interim plea to implead Directorate General of Civil Aviation (DGCA) as a party to a PIL. Swamy, in his another application, has sought initiation of contempt proceedings against an official of finance ministry for allegedly making false statement in a reply filed on behalf of the Centre on 25 October last year.

He has claimed that the official had stated that issues of “substantial ownership" and “effective control" of the airline prior to grant of approval for foreign direct investment (FDI), was to be decided by DGCA.

However, DGCA in its 21 February public notice had said that Foreign Investment Promotion Board (FIPB) is the competent authority to decide the same and it had examined these issues and taken a decision in April 2013.

Swamy and the FIA are opposing clearance to the deal on the ground that according to government policy, FDI up to 49% is allowed in existing airlines which are already in operation and not to new or proposed joint ventures.

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Published: 01 May 2014, 08:44 PM IST
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