New Delhi: According to the Government, Ernst & Young LLP (EY), the Transaction Advisor to the Government of India, has rejected five Expressions Of Interest (EOIs) pertaining to the Air India divestment bid process citing lack of proper documentation.
The Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey had on December said that the government has received multiple bids for the divestment of its stake in national carrier Air India.
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On Monday, the Air India Employees Consortium, which participated in the Air India divestment bid, was disqualified from the divestment process by Ernst & Young LLP (EY).
Meenakshi Malik, the airline's commercial director, who has been coordinating with the employees, said in a three-page letter to the employees that the consortium was not selected.
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According to EY, the reasons behind the disqualification of the employees' bid are: non-submission of required three years audited financial statements for foreign consortium member, non-submission of information for details by interested builders for investment in offshore companies, which forms a substantial part of the net worth of the foreign consortium member, and the foreign consortium member not being an appropriately regulated foreign investment fund as defined in the preliminary information memorandum.
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After the disqualification of the consortium of Air India employees' from the bidding process to take over the airline -- only the Tata Group and SpiceJet remain in the fray for buying the cash-strapped Air India. The government intends to complete the divestment process of the national carrier by July-August.
