NEW DELHI: At the heart of the Central Bureau of Investigation’s (CBI) case against AirAsia India are two contracts with agents allegedly promising waiver of the 5/20 rule, tax reductions in aviation fuel, favourable commercial slots and media management, besides lobbying with key government officials.One also had a “success fee” clause for obtaining regulatory clearances for overseas flying. Deliverables promised in official contracts with the airline, alleged the CBI FIR, were a cover for bribes to unknown public officials, included facilitating “one on-one meetings of AirAsia senior management with key stakeholders” to highlight concerns.A contract signed with Deepak Talwar — named by the CBI — promised removal of the 5/20 rule that restricted airlines with less than five years of experience and 20 aircraft by April 2015 by engaging with government officials. The contract reads, “We intend to focus on the following: Removal of the rule that says Indian carriers with less than 5 years’ experience and 20 aircrafts cannot fly overseas, obtain commercially viably slots, enhance reputation with select stakeholders, reduction of taxes on ATF.” CBI has alleged at least Rs 17 lakh was paid directly by AirAsia to the consultant for services.The larger contract, for Rs 12 crore, which was signed in May 2015 with Singapore-based HNR Trading, had a special clause that suggested greater remuneration would be paid on completion of objectives. “AirAsia will pay success fee on successful completion of predefined milestones as mutually agreed between the parties,” the contract reads. It, however, does not define the actual tasks for the company or quantum of success fee. 64393567

The CBI also has in its possession internal documents of the company that suggest HNR Trading was a shell company that was promoted by Rajendra Dubey — a former ground handling contractor of AirAsia India — and had a fictitious address. The contract with Talwar specified that after the 5/20 rule waiver, the agent would help AirAsia get “required approvals and allocations as per the respective air services agreements for flights and seat allocations and subsequent slots” by engaging with the “ministry of civil aviation and the Directorate General of Civil Aviation.”Besides lobbying to reduce ATF tax, the consultant promised to undertake media relations and monitoring for “disseminating our messages,” preparing of industry-focused research papers and a crisis management plan to focus on public affairs. In its case, CBI has flagged these as “sham contracts on basis of a bogus agreement on plain paper, which was utilised for paying bribes to unknown public servants of the Government of India and others for securing permits of international scheduled air transport services.”AirAsia has denied any wrongdoing and said it is cooperating with all regulators and agencies to present the facts. “We hope to bring early resolution to all such issues,” the airline said.