They have to file their replies on the allegation by the Federation of Indian Airlines (FIA) that the government granted the airline a flying licence in India although it did not disclose its brand equity agreement.

Briefly, the Civil Aviation Ministry, Directorate General of Civil Aviation and the Foreign Investment Promotion Board have to explain why effective control of the airline, under the brand equity agreement, remains with the foreign party.

The licensing rules, pointed out the FIA in its application, stipulated the Indian party should have effective control of AirAsia India.

Bharatiya Janata Party leader, Subramaniam Swamy, meanwhile wants the Court to bring criminal contempt proceedings against company officials involved in applying for its flying licence. He cited the brand equity agreement being left out from the application.

Swamy also wants to challenge the airline being approved. Foreign investment, under the rules, was only allowed in existing airlines, he pointed out. “AirAsia India was not an existing carrier.”

The Court said it will call for his application before the next hearing date on November 11.

Initially, Swamy wanted the Court to immediately suspend the flying licence granted to AirAsia.

AirAsia India began with AirAsia Malaysia, and two local investors, the Tata Group and Telestra Tradeplace.

The airline has denied the allegations against it.