PIA allegedly being forced to 'shut down operations in India'
National flag carrier says they have been issued notices of "illegal properties"; PIA India chief's visa not...
A Pakistan International Airlines (PIA) plane prepares to take off at Alama Iqbal International Airport in Lahore in this February 1, 2012 file photo. PHOTO: REUTERS
NEW DELHI:
Relations between India and Pakistan may suffer another blow as national flag carrier Pakistan International Airlines (PIA) has alleged it is being harassed into shutting down its operations in India, The Times of India reported.
PIA is allegedly being forced to shut down its India operations over its “illegal” purchase of properties in violation of the Reserve Bank of India (RBI)’s guidelines.
The properties in question include four flats on the Barakhamba Road in New Delhi, which house the main PIA office in India. Regarding the properties, PIA was served a notice by both RBI and the Enforcement Directorate (ED). However, PIA replied to the notice saying that the flats, including the parking lots, were purchased in 2005 as per the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations and that a declaration of the acquisition was filed with RBI within the stipulated 90 days.
PIA Manager in North India Saeed Ahmad Khan told The Hindu that the purchases of four office spaces in Connaught Place 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,” Khan said.
PIA has now asked RBI and ED to immediately withdraw their notices "in larger interests of people from both countries'' saying these were hampering its operations in New Delhi.
PIA operates a weekly flight to Lahore and Karachi from Delhi and twice to Karachi from Mumbai. It has had its office in India since 1976. PIA, according to Pakistan, will not give in to any "intimidation" and will not stall operations until it is specifically asked to do so by India.
Pakistani officials have stated that the visa of the PIA chief in India has not been extended and his cellphone has also been disconnected by Indian authorities.
"It reflects a malafide intent to stop PIA operations and cause a blow to people to people contact. If PIA shuts down, people in northern India may still travel to Pakistan through Wagah but it will greatly inconvenience those in other parts of the country," a Pakistan official stated.
The violation of the RBI guidelines seems odd to come up after 10 years of purchase of the flats, according to Pakistani officials. Reports suggest that it may be related to the change in government in India, now led by Narendra Modi.
The first notice to PIA was sent in November 2014. On the contrary, however, Indian government officials said they had nothing to do with the notice.
Relations between India and Pakistan may suffer another blow as national flag carrier Pakistan International Airlines (PIA) has alleged it is being harassed into shutting down its operations in India, The Times of India reported.
PIA is allegedly being forced to shut down its India operations over its “illegal” purchase of properties in violation of the Reserve Bank of India (RBI)’s guidelines.
The properties in question include four flats on the Barakhamba Road in New Delhi, which house the main PIA office in India. Regarding the properties, PIA was served a notice by both RBI and the Enforcement Directorate (ED). However, PIA replied to the notice saying that the flats, including the parking lots, were purchased in 2005 as per the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations and that a declaration of the acquisition was filed with RBI within the stipulated 90 days.
PIA Manager in North India Saeed Ahmad Khan told The Hindu that the purchases of four office spaces in Connaught Place 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,” Khan said.
PIA has now asked RBI and ED to immediately withdraw their notices "in larger interests of people from both countries'' saying these were hampering its operations in New Delhi.
PIA operates a weekly flight to Lahore and Karachi from Delhi and twice to Karachi from Mumbai. It has had its office in India since 1976. PIA, according to Pakistan, will not give in to any "intimidation" and will not stall operations until it is specifically asked to do so by India.
Pakistani officials have stated that the visa of the PIA chief in India has not been extended and his cellphone has also been disconnected by Indian authorities.
"It reflects a malafide intent to stop PIA operations and cause a blow to people to people contact. If PIA shuts down, people in northern India may still travel to Pakistan through Wagah but it will greatly inconvenience those in other parts of the country," a Pakistan official stated.
The violation of the RBI guidelines seems odd to come up after 10 years of purchase of the flats, according to Pakistani officials. Reports suggest that it may be related to the change in government in India, now led by Narendra Modi.
The first notice to PIA was sent in November 2014. On the contrary, however, Indian government officials said they had nothing to do with the notice.