EC approached on Tata-AirAsia deal: HC informed

Tags: News
The Delhi High Court was today informed that the Election Commission has been approached to decide whether further approvals to operationalise the $ 30 million deal between Tata Sons and Malaysia-based AirAsia would violate the model code of conduct.

"In any case, the issue will finally be decided by the next government. The Election Commission of India is looking into the question as to whether any further order will violate the mode code of conduct," BJP leader Subramanian Swamy told a bench headed by Acting Chief Justice B D Ahmed.

The court considered the plea and fixed the matter for further hearing on April 23.

The bench, also comprising Justice Siddharth Mridul, asked the high court registry to list a fresh plea of Swamy seeking initiation of criminal contempt proceedings against an official of finance ministry for allegedly making false statement in a reply filed on behalf of the Centre on October 25, last year.

In his contempt plea, Swamy claimed that the official had stated that issues of "substantial ownership" and "effective control" of the airline, prior to grant of approval for FDI, was to be decided by the DGCA.

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

Swamy contended that based on the false statement of the official, the high court had refused to grant him any interim relief.

He has alleged the $ 30 million joint venture, between Tata Sons and Malaysia based AirAsia Berhad, had to show before the FIPB that the airline would be essentially controlled by Indians, but this has not been done.

The court was hearing the PIL which is opposing clearance to the deal on the ground that according to government policy, foreign direct investment (FDI) up to 49 per cent is allowed in existing airlines which are already in operation and not to new or proposed joint ventures.

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