A forensic investigation into AirAsia (India)’s accounts has revealed that the airline’s flamboyant former Chief Executive Officer (CEO) Mittu Chandilya had charged his personal expenses to the company.
While Mr. Chandilya, a former model, cleared some of his bills, the balance was cleared by his boss AirAsia Berhad CEO Tony Fernandes, according to a forensic report prepared by Deloitte Touche Tohmatsu India.
“Mittu’s personal expenditure was routed through and was charged to Air Asia (India) Ltd (AAIL). In total, expenses charged to the company amounted to Rs.1.63 crore,” according to the report.
Bills toward his family travel, stay and personal expenses were reimbursed by the company. His car lease, appointment of two drivers, road tax for personal vehicles, purchase of designer clothes, furniture and purchases of iPhones were also charged to the company, according to the report. It said Mr. Fernandes had approved expense claims of Rs.48 lakh.
“Other expenses such as that of the drivers, car lease, purchase of clothes were directly approved by Mr. Mittu.”
Possible nexusThe report, which was submitted to Tata Sons days before the ouster of former Tata Sons Chairman Cyrus Mistry, also pointed out a possible nexus between Mr Chandilya and a person named Rajendra Dubey.
“Rajendra Dubey assisted Mr. Mittu in liaison activities for AAIL since August 2013 and in setting up meetings with Chief Ministers and politicians across the country,” the report said, adding that there was no formal contract signed between Mr Dubey and AAIL.
“Payments amounting to Rs.12.28 crore were made against invoices of HNR Trading — a Singapore-based entity where Dubey was a director — for government, regulatory framework. There is no evidence of actual services provided,” the report said adding that the agreement was signed on plain paper.
Apart from the Rs.12,28 crore payment made to Mr. Dubey’s company, an additional Rs.10.5 crore payment was made towards invoices of an entity called Link Media Immigration Services “purportedly on account of media services rendered.” This company’s name does not feature in the database of Registrar of Companies, according to the report.
Calls made to Mr. Chandilya’s two mobile phone numbers did not go through. AirAsia India did not offer any comment. Earlier this week, the airline had said, “There is an ongoing investigation against certain former personnel involving irregular personal expense claims and certain company charges. This has already been reported to and discussed at the previous Board meeting.”
