India's largest philanthropic organisation, Tata Trusts, has sought to distance itself from ongoing federal investigations by authorities there into alleged corruption and licensing irregularities involving AirAsia India.

This comes as the Central Bureau of Investigation (CBI) continues to pursue its case against AirAsia India Ltd (AAIL) and AirAsia Group Bhd CEO Tony Fernandes on the matter.

Bangalore-based AAIL is a joint venture between Malaysia's AirAsia and conglomerate Tata Sons Ltd, with the latter owning a 49 percent stake in the business.

Tata Trusts, in turn, owns two-thirds of the stock holding of Tata Sons.

"The trustees (of Tata Trusts) categorically reiterated that the reported investigations have nothing whatsoever to do with the affairs of any of the Tata Trusts and noted that papers and documents relating to the Trusts were neither seen nor called for by the investigators," the organisation said in a statement sent to Malaysiakini.

It further said it was standing by its managing trustee R Venkataramanan in his capacity as a non-executive director and a nominee of Tata Sons on the Board of AAIL, despite the latter also being named in the probe.

"The office of Mr R Venkataramanan... in the Trust office premises, was visited by the authorities and clarifications sought on some papers relating to AirAsia India, some of which were taken by the authorities.

"The trustees reaffirmed their complete trust and continued support to Mr Venkataramanan under whose executive leadership as managing trustee, the Tata Trusts have done, and are continuing to do, outstanding work across India," it said.

Tata Trusts added that this did not mean that its offices were raided by authorities.

Risk to India expansion plans

India’s CBI had accused the airline and third parties of attempting to influence or circumvent the country's aviation policy pertaining to international carriers operating domestically.

It said it had searched five AAIL locations in Delhi, Mumbai and Bangalore, seizing certain documents.

The probe centred around a pre-2017 policy, dubbed the 5/20 Rule, which was in effect at the time the joint venture was inked in 2014.

It stipulates that companies such as AirAsia India would be granted international licences provided that they operated domestically first for five years and maintained a fleet of 20 aircraft.

However, the rule was relaxed in 2016 to allow airlines to fly internationally, as long as they maintained either 20 aircraft or 20 percent capacity on local routes.

AirAsia, in a statement to Bursa Malaysia, labelled the accusations as "baseless" and motivated by reasons yet unknown.

AAIL, meanwhile, placed the blame on a former CEO, who it did not name and whom it said it had initiated criminal proceedings against.

Even so, it was reported that the CBI had summoned Fernandes to India on June 6 for questioning, but the airline claimed to have had no knowledge of such request.

Forging ahead

Despite the probe threatening to put a damper on AirAsia plans to launch an initial public offer (IPO) next year and expand its Indian arm internationally, the airlines appear to be forging ahead.

The same day the CBI issued a press release informing of its case on May 29, AAIL issued a press release stating it would be conducting searches for cabin crew beginning June 9.

This followed a statement on May 17 boasting that its employee headcount had reached 2,000.

As at May, the airlines stated it has a fleet of 18 aircraft with 20 destinations and 41 routes in India.

It also announced on Wednesday that it was adding an additional route to its India network of flights, from Bangalore to Amritsar to "further solidify its presence in India".