PIA’s Delhi office in trouble

Written by | January 18, 2015 | 0

New Delhi: With relations between India and Pakistan reaching freezing point, a government notice to the sole carrier for flights between the two countries, Pakistan International Airlines, is likely to set off a diplomatic storm, with an Enforcement Directorate notice to PIA to “dispose of” its properties in Delhi as their purchase was “unauthorised.”

The ED said the properties were acquired in contravention of the Foreign Exchange Management Act and without the requisite Reserve Bank of India permissions. However, PIA Manager in North India, Saeed Ahmad Khan, told The Hindu that the purchases of four office spaces in Connaught Place here in 2005 had received clearances at the time. The airline has been operating from there for nearly a decade.

“We are at a loss to understand why they are acting now, and how we will operate without marketing and sales offices,” Mr. Khan said.

The issue has been discussed between Indian and Pakistani authorities for two months now with no resolution, and sources said the Pakistani government was going to take it up with the Ministry of External Affairs soon.

On Friday, PIA responded formally to the ED’s notice (FE.CO.FID 673/10.91.409 dated November 24, 2014) asking the RBI to “immediately withdraw” the notice, which it said was “hampering our smooth operation for the larger interest of the people of both countries.”

The reply also added that the RBI had been informed of the purchase through ‘Form IPI’ on June 20, 2005, via Citibank that had processed the payments.

Filed in: National

No comments yet.

Leave a Reply