ED summons AirAsia CEO and top brass. Synergy Group and Prudent ARC submit EoIs for Jet Airways.
ED Calling: The Enforcement Directorate (ED) has summoned AirAsia Chief Executive Officer (CEO) Tony Fernandes and the top brass of the private carrier on January 20th in an ongoing probe against the airline. Summons have been issued under the Prevention of Money Laundering Act (PMLA).
The case relates to an alleged violation of norms by Group President Tharumalingam Kanagalingam, former Chairman S Ramadorai, Senior Group Executive Naresh Algan and ex-CEO Mittu Chandiliya for relaxation of the 5/20 rule to secure a licence to operate internationally as well as a violation of Foreign Investment Promotion Board (FIPB) rules for its Indian venture Air Asia India. Moneycontrol
Good to Know: The 5/20 rule is a norm of the Indian Aviation Ministry under which national carriers are required to have five years of operational experience and a fleet of minimum 20 aircraft to fly overseas.
Swipe Right: South America-based Synergy Group and India-based Prudent Asset Reconstruction Company have submitted Expressions of Interest (EoI) to acquire grounded Jet Airways as the deadline ended on Wednesday.
As per sources, Hinduja Group had also explored investing in the beleaguered airline, but backed out later because it found no value. A Dubai-based fund, too, had showed interest in investing in the grounded airline, but did not submit an offer.
This is the second time that the lenders to Jet called for EoIs. The first round of bidding did not result in any resolution plan for the revival of the airline. Jet had shut operations on April 17th last year. It was admitted under the insolvency process in June. CNBCTV18
Hand-curated Business News from Top Publishers & Platforms, Richly Crafted to Fit into One Wholesome Email. Subscribe Now to receive a nuanced 360 Degree account of key events from the World of Business and Finance every day.