Federal investigators in India have placed a drone technology firm under scrutiny after arresting government aviation officials and executives from a major industrial conglomerate on bribery charges this week.
The Central Bureau of Investigation took action against personnel from India’s aviation regulatory body and Reliance Industries, claiming corrupt payments were made to fast-track approval processes for importing certain unmanned aircraft.
At the center of the controversy is Asteria Aerospace, an obscure subsidiary within billionaire Mukesh Ambani’s vast Reliance business network. Reliance has stated it neither authorized nor had knowledge of any such financial arrangements, while legal representation for the aviation official has challenged his detention.
India’s unmanned aircraft sector has experienced significant expansion following Prime Minister Narendra Modi’s administration relaxing regulatory restrictions in 2021. The nation now operates approximately 39,000 authorized drones for agricultural monitoring, community mapping, and various government programs.
According to its corporate website, Asteria Aerospace markets itself as a drone technology enterprise delivering “actionable intelligence from aerial data.” The company assists clients in gathering precise information and performing artificial intelligence-driven analysis using geographic imagery collected by unmanned aircraft.
Through its fleet of more than 400 deployed drones, Asteria serves the farming, building, telecommunications, and energy industries. One example includes drone operations for Reliance BP Mobility, where the company studied road traffic patterns and calculated vehicle velocities to determine optimal locations for retail establishments.
Entrepreneurs Nihar Vartak and Neel Mehta established the business in 2011 within Bengaluru, India’s prominent technology center. Reliance purchased the company in 2019 through a $2.45 million transaction.
The acquisition aligned with Reliance’s strategy to invest in cutting-edge technologies, according to company statements. Current ownership data from March 2024 indicates that Reliance Jio Platforms, the conglomerate’s technology division, holds a 74% stake in Asteria.
Reliance Jio Platforms is also preparing for a public stock offering that analysts predict could become India’s largest initial public offering in history.
Financial records show Asteria’s income jumped dramatically from 11 million rupees ($117,000) in fiscal year 2020 to 400 million rupees ($4.24 million) by fiscal year 2024.
Current aviation regulations established in 2021 require all unmanned aircraft systems to obtain proper certification before operating within Indian airspace. Asteria claims to be the first domestic drone manufacturer achieving three distinct certifications from the country’s aviation safety authority.
The company highlighted that its domestically-produced AT-15 drone model was featured during the 77th Republic Day Parade held earlier this year.
Law enforcement officials report they initiated their investigation after receiving information suggesting a Reliance executive and government regulator had agreed upon a $16,000 payment to expedite processing of three import applications submitted by Asteria Aerospace.
