GST Verification At Akasa Air; CEO Vinay Dube Asked To Remain In Mumbai

SNV Aviation Pvt Ltd, the parent company of Akasa Air, has confirmed that officers from the Mumbai Goods and Services Tax (GST) department recently visited its offices.

According to the airline, the visit formed part of a routine business verification process conducted by tax authorities.

In a statement, Akasa Air said it takes regulatory compliance seriously and is extending full cooperation.

“Akasa Air confirms that as part of their routine business verification process, officers from the Mumbai GST department visited our offices,” the airline said.

It further added, “Akasa takes its tax compliance very seriously, and we are working in full cooperation to ensure we provide all the information and responses requested from us.”

Sources, however, suggest that the verification may involve a closer examination of certain financial transactions.

These reportedly include suspected irregularities in accounts related to unusually high transactions under legal expenses, as well as payments of substantial fees or salaries to legal professionals who allegedly do not hold corresponding operational roles within the company.

Some reports suggest that authorities may examine the matter from the perspective of potential financial impropriety, though investigative agencies have issued no official confirmation.

The airline has not commented on these claims beyond its statement on routine verification.

CEO Asked to Remain in Mumbai: Sources

According to sources, Akasa Air Chief Executive Officer Vinay Dube has been asked not to leave the company’s base in Mumbai during the verification process.

There has been no official communication from authorities confirming any formal restrictions, and the airline has not stated anything on this aspect.

The developments have revived discussion around financial practices in the aviation sector, particularly aircraft sale-and-leaseback arrangements and their tax treatment.

Industry experts point out that the airline business is capital-intensive, with sustained losses often arising from expansion, high operating costs, and network growth.

Analysts note that airline stakeholders typically realise gains through company valuation and sale-and-leaseback transactions.

Critics argue that leaseback amounts and their tax treatment deserve closer regulatory scrutiny across the sector to ensure transparency and consistency.

Regulators have not established these issues, and the industry continues to debate them.

Akasa Air has reiterated that it is cooperating fully with the GST authorities. Any conclusions will depend on the outcome of the verification process, which remains ongoing.