Tata Sons rejects Cyrus Mistry's Rs 22 crore fraud allegation in Air Asia, says charges are 'frivolous'

Tata Sons on Wednesday rejected its former chairman Cyrus P Mistry's damning allegation that Tata Trusts' R Venkataramanan was involved in financial wrongdoings at Air Asia India.

Cyrus Mistry after his removal as the group chairman wrote an email in which he said that fraudulent transactions worth Rs 22 crore had taken place at the groups aviation venture.

He also said that Venkatramanan who was Trustee at Tata Trusts' wanted to cover up the murky transactions.

Tata Sons yesterday denied the charges and said: "Tata Sons strongly rejects the statement from Cyrus P Mistry which seeks to insinuate wrongdoing in the affairs of Air Asia India by R Venkataramanan."

The Group further said that Air Asia India with the support of Tata Sons has taken definitive steps both in civil and criminal courts which have cleared the air in relation to the mischievous allegations.

Tata Sons termed the allegation as 'frivolous' and said Mistry's charges could be 'value destructive'. "Tata Sons continues to evaluate its legal options in this regard as we have the highest respect for the judiciary and has never resorted to muzzle and interfere with legal proceedings as alleged by Mistry," the press statement said.

After his allegation,  Venkataramanan filed a Rs 500 defamation case against Mistry. However, when a local court asked Mistry to appear before it, he accused the Tatas of subverting the legal system and warned that they could not muzzle him in with defamation suits.

He said: "The attempt to initiate criminal prosecution for alleged defamation is an ill-advised and immature proxy battle through Venkataraman whose role in Air Asia India is a subject matter of several investigations by law enforcement agencies."

"The move by the Tata trustees to attempt to muzzle and interfere with legal proceedings will be effectively and appropriately dealt with. We believe in the legal system and know such subversion of justice systems will meet its fate," Mistry had said.