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Tata Group: There is no corruption or manipulation in valuation of Air India

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Published On: January 05, 2022 at 19:54 IST

Union Government and Tata group informed the Delhi High Court that there has been no corruption or rigging in the valuation of Air India as alleged by the BJP leader and Rajya Sabha MP Subramanium Swamy ‘s Plea.

The BJP leader’s Plea seeks probe by Central Bureau of Investigation into the National airline’s disinvestment.

On behalf of the Centre, Solicitor General Tushar Mehta declined all the allegations of giving undue favours to Tatas and methodology being followed is illegal put by Subramanium Swamy.

The Centre has approved of the highest bid made by Tata Sons Company for 100% equity shares of Air India and Air India Express, including the 50% stake of government.

The Plea filed by Subramanium Swamy claimed that the process was totally illegal and arbitrary with regard to public interest. Swamy has requested for decisions or further approvals to be stopped in the disinvestment process.

“I am in favour of disinvestment, but this is gigantic corruption in my view. I am complaining about the rigged procedure. It is rigged in favour of Tata companies”, the Rajya Sabha MP said.

The Court was informed that the second bidder SpiceJet was compatible to bid as there were insolvency proceedings going on against the airlines.

SG Mehta said that the SpiceJet however was not the complete bidder instead the promoter of the airline Ajay Singh was the part of the consortium, was the second bidder.

With the view to the AirIndia’s huge losses the Centre had decided about its disinvestment in 2017 itself.

On behalf of the Tatas, Advocate Harish Salve informed the Court that the bids are completed, share purchase agreements that are duly signed and all of these were in public domain from the start. He also said that there were no evidences put forth by Petitioner