New Delhi: The Centre opposed Tuesday a plea filed by BJP leader Subramanian Swamy in the Delhi High Court. The plea alleged that the methodology adopted by the government in the valuation of national carrier Air India was ‘arbitrary, illegal and against public interest’. Swamy has sought to set aside and revoke any action or decision or grant of any further approvals, permissions or permits by authorities with respect to the Air India disinvestment process.
A bench of Chief Justice DN Patel and Justice Jyoti Singh heard the arguments put forward by Swamy, Solicitor General Tushar Mehta and senior advocate Harish Salve, who appeared in the matter on behalf of Talace Private Limited. The court said it will pass an order on the petition January 6.
The court also asked the counsel for the Centre and the other respondents to file a short note during the day. It granted liberty to Swamy to file a short note by Wednesday. It further asked the petitioner to file legible copies of certain documents annexed with the petition.
Swamy has also sought a CBI investigation into the role and functioning of authorities and the submission of a detailed report before the court.
In October last year, the Centre accepted the highest bid made by a Tata Sons company for 100 per cent equity shares of Air India and Air India Express, along with the government’s 50 per cent stake in ground-handling company AISATS – the first privatisation in India in 20 years.
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Swamy submitted that a consortium led by SpiceJet was the other bidder for Air India. However but as insolvency proceedings are going on against the airline in the Madras High Court, it was not entitled to bid and therefore, effectively there was only one bidder.
“The methodology adopted by the government in the valuation of Air India was arbitrary, illegal, corrupt, mala fide and against public interest,” Swamy said in his plea.
Mehta contended that the petition was founded on three misconceptions and it does not need any consideration. He said according to the petitioner, SpiceJet was the second bidder, but the fact is that the airline was never a part of the consortium that submitted the bid and proceedings pending against it have no relevance here. “One individual, Ajay Singh, was part of the consortium, which was the second bidder and not SpiceJet,” the solicitor general said.
Mehta said Air India’s disinvestment was a policy decision taken by the Centre, keeping in view the huge losses being incurred by the airline, and that the government was competent to take such a decision.
Swamy said he is not opposing the policy of disinvestment and he has always believed in the idea of a free market. However, he is raising the issue of ‘impropriety, illegality, misconduct and corruption’ in the 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,” Swamy contended.
The government signed the share purchase agreement with Tata Sons October 25 last year for the sale of Air India for Rs 18,000 crore. The Tatas would pay Rs 2,700 crore in cash and take over Rs 13,500 crore of the airline’s debt.
As of August 31, 2021, Air India had a total debt of Rs 61,562 crore, of which 75 per cent or Rs 46,262 crore will be transferred to a special purpose vehicle, Air India Assets Holding Limited (AIAHL), before handing over the airline to the Tata group.