The Delhi High Court on Wednesday directed the Centre government, Foreign Investment Promotion Board (FIPB) as well as the Commerce and Civil Aviation ministries to respond to BJP leader Subramanian Swamy's plea challenging the government's permission for AirAsia India.

AirAsia India, a joint venture between Malaysian carrier AirAsia, Tata Sons and Arun Bhatia, has already received already received the government's in-principle approval. The FIPB cleared the proposal in April this year.

In his plea, Swamy sought quashing of government's permission given to AirAsia for starting its operation in India, arguing that the government's FDI policy allows foreign airline to acquire up to 49 per cent stake in existing airlines which are already in operations and not in new or proposed joint ventures.

A bench headed by Chief Justice N V Ramana, issued notices to the Centre government, FIPB and Commerce and Civil Aviation ministries. The bench asked the government to file an affidavit explaining its policy on the issue by
30th of October.

Meanwhile, government sources said that AirAsia India could start operations by December this year or early January next year.