No threat to PIA’s Delhi operations

[Irfan Hanif]

KARACHI: There is no imminent threat to flight operations to New Delhi, said a spokesman for the Pakistan International Airlines on Monday.

He said the airline had acquired immoveable property in New Delhi in 2005 for running its offices after completing all necessary formalities.

After more than nine years, the Reserve Bank of India, through a letter dated Nov 24, 2014, objected to the purchase of the property, alleging that it was done without its permission.

The spokesman said the PIA was taking measures to safeguard and protect its assets, playing down press reports that flight operations to New Delhi might be affected because of the dispute.

 

[Sugarcane]

Hram Khoor officials of PIA should sell property in India and close it's operations and should focus on more profitable routes.

 

[Bang Galore]

KARACHI: There is no imminent threat to flight operations to New Delhi, said a spokesman for the Pakistan International Airlines on Monday.

He said the airline had acquired immoveable property in New Delhi in 2005 for running its offices after completing all necessary formalities.

After more than nine years, the Reserve Bank of India, through a letter dated Nov 24, 2014, objected to the purchase of the property, alleging that it was done without its permission.

The spokesman said the PIA was taking measures to safeguard and protect its assets, playing down press reports that flight operations to New Delhi might be affected because of the dispute.

PIA is clearly in the wrong here, this is a case that predates Modi's administration and is essentially an RBI driven issue. ED is pretty much responding to RBI's letters.

(According to the May 1977 agreement between PIA and RBI, the Pakistan airline would require prior permission of the RBI to acquire immovable property. The Foreign Exchange Management Act also requires companies registered in Pakistan to take prior permission of RBI to purchase immovable assets. In this case, PIA informed RBI after purchase of the property in June 2005


Nine years since RBI first wrote to the Finance Ministry, intimating about the PIA acquisition, the DEA on June 11 this year informed RBI that “the proposal has been examined and rejection of the Government of India is hereby conveyed to the proposal of M/s Pakistan International Airlines for acquisition of immovable property at New Delhi, India”.)

 

[Barakah]

No need to do business in India good move by India. I hope all operations close.