‘No Foreign Investment Today, Prayers Have Become Purely Academic’: Delhi High Court On Subramanian Swamy’s Plea Against 2013 Tata-AirAsia Deal

The Delhi High Court has disposed of a public interest litigation filed by BJP leader Subramanian Swamy against the Foreign Investment Promotion Board (FIPB) clearance granted by Union of India in 2013 in favour of a Malaysian Company Air Asia Investment Limited.

A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad closed the proceedings in view of the fact that there is no foreign investment as of today and the prayers sought in the petition have become purely academic.

“The Petitioner, who appears in person, has stated that he is no longer interested in pursuing the writ petition. In view of the statement made by the Petitioner appearing in person, the writ petition stands disposed of,” the court said.

Swamy had challenged the decision of Ministry of Finance (Department of Economic Affairs) dated April 03, 2013, allowing Air Asia to incorporate a new joint venture company with foreign equity of 49%. The balance 51% equity share was to be held in the ratio of 30% by Tata Sons Limited and 21% by Telestra Trade Pvt. Limited.

It was Swamy’s case that the decision was contrary to the FDI Policy of the Union of India and the guidelines laid down by the Ministry of Civil Aviation which does not permit foreign investment by a foreign airline.

The court was apprised that there have been substantial changes in the shareholding of Air Asia.

It was submitted that pursuant to the regulatory approvals of Competition Commission of India (CCI) and Directorate General of Civil Aviation last year, the shareholding of Air Asia (India) Private Limited was revised and the entity became a wholly owned subsidiary of Air India Limited.

The court also perused the status reports filed by Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) and said:

“In view of the fact that there is no foreign investment as of today, the prayers made in the writ petition have become purely academic.”

Title: DR. SUBRMANIAN SWAMY v. UNION OF INDIA & ORS.

Citation: 2023 LiveLaw (Del) 236

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