New Delhi: Indian police said on Tuesday they had filed a case against AirAsia Group, the airline's CEO Tony Fernandes and its domestic entity AirAsia India over allegations of corruption and breaking rules in obtaining a flying licence.

The Central Bureau of Investigation (CBI) accused the airline, some of its employees and third parties of violating India's foreign direct investment rules while obtaining the licence, and of bribing government officials in an attempt to get regulations relaxed to allow AirAsia India to fly international routes.

AirAsia India said in a statement it refuted any allegations of wrongdoing and was co-operating with all regulators and agencies "to present the correct facts".

The parent group, AirAsia, and Fernandes himself did not respond to emails seeking comment.

The police investigation is a blow for the budget airline, which had been planning to add new jets to its Indian fleet as it seeks to expand in one of the world's fastest-growing aviation markets.