IndiGo promoters' war reaches Sebi: Rakesh Gangwal raises governance issues

RPTs relate to deals IndiGo has entered into for the hotel accommodation of its crew, simulators for crew training, and the office space the airline uses in the country

Company News: IndiGo, India’s largest airline, is facing its worst crisis as promoters Rahul Bhatia and Rakesh Gangwal have made serious allegations against each other, forcing the Securities and Exchange Board of India (Sebi) to intervene.

Bhatia and Gangwal, who has brought charges of lapses in corporate governance, together hold more than 70 per cent in the company and IndiGo’s success has often been credited to their synergy.

Gangwal, who holds 36.68 per cent, has sought permission to hold an extraordinary general (EGM) meeting, alleging that the company has participated in objectionable related-party transactions (RPTs) and has not complied with corporate governance standards.

He has said Bhatia-owned InterGlobe Enterprises (IGE), which has greater control over the company, has misused its powers to enter into RPTs with IndiGo.

Bhatia has denied the charge, saying that the Companies Act gave the powers to the board of the company to decide its functioning. Read More

Business Standard