Take your complaints on Tata-AirAsia deal to concerned ministries, High Court tells Swamy
17 Jan 2014 12:12 AM GMT
A bench headed by Chief Justice N V Ramana made the observation during the hearing of a PIL when a lawyer appearing on behalf of Swamy sought a passover of the case on the ground that the BJP leader was on his way to the court from the airport.
‘In the, meanwhile, why don't you go and raise your objections with them (ministries concerned),’ the bench said to the counsel appearing on behalf of Swamy. As Swamy could not attend the proceedings, the court adjourned the matter to 23 January. The BJP leader, in his plea, has sought a direction restraining the Centre from taking any decision or granting any other approval contrary to the applicable FDI policy and DGCA guidelines or granting any approval for foreign investment by a foreign airlines in a greenfield airline project.
Swamy had first moved the SC which asked him to withdraw the petition and approach the High Court. In April this year, the FIPB okayed the $30 million deal.
Swamy's PIL opposes 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.
The policy was brought to boost the aviation industry which was undergoing financial crisis, the petition said. Swamy in his PIL alleged that it is ‘clearly contrary to the FDI policy’ and also against ‘the guidelines notified by the nodal ministry, the Union Ministry of Civil Aviation, which does not permit foreign investment by a foreign airline, in such a greenfield airline’. He said the FDI policy requires that ‘effective control’ of the joint venture will be vested with Indian nationals.
He claimed that the joint venture, in which Tata Sons Ltd has 30 per cent stake, Arun Bhatia-led Telestra Tradeplace Pvt Ltd has 21 per cent and AirAsia the majority share holder with 49 per cent stake, is to start the operations in India contrary to the FDI policy.
AirAsia Berhad, a public listed Malaysian company which operates AirAsia through its wholly-owned investment vehicle Air Asia Investment Ltd, had in February entered into an agreement with Tata Sons Ltd and Telestra Tradeplace Pvt Ltd to set up a joint venture company for passenger airline business in India.
‘In the, meanwhile, why don't you go and raise your objections with them (ministries concerned),’ the bench said to the counsel appearing on behalf of Swamy. As Swamy could not attend the proceedings, the court adjourned the matter to 23 January. The BJP leader, in his plea, has sought a direction restraining the Centre from taking any decision or granting any other approval contrary to the applicable FDI policy and DGCA guidelines or granting any approval for foreign investment by a foreign airlines in a greenfield airline project.
Swamy had first moved the SC which asked him to withdraw the petition and approach the High Court. In April this year, the FIPB okayed the $30 million deal.
Swamy's PIL opposes 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.
The policy was brought to boost the aviation industry which was undergoing financial crisis, the petition said. Swamy in his PIL alleged that it is ‘clearly contrary to the FDI policy’ and also against ‘the guidelines notified by the nodal ministry, the Union Ministry of Civil Aviation, which does not permit foreign investment by a foreign airline, in such a greenfield airline’. He said the FDI policy requires that ‘effective control’ of the joint venture will be vested with Indian nationals.
He claimed that the joint venture, in which Tata Sons Ltd has 30 per cent stake, Arun Bhatia-led Telestra Tradeplace Pvt Ltd has 21 per cent and AirAsia the majority share holder with 49 per cent stake, is to start the operations in India contrary to the FDI policy.
AirAsia Berhad, a public listed Malaysian company which operates AirAsia through its wholly-owned investment vehicle Air Asia Investment Ltd, had in February entered into an agreement with Tata Sons Ltd and Telestra Tradeplace Pvt Ltd to set up a joint venture company for passenger airline business in India.
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