Allegations and counter-allegations continue to deepen the promoter crisis in IndiGo-the country’s largest airline.
InterGlobe Aviation promoter Rakesh Gangwal on Tuesday said that he has provided all information, including those related to whistle blowers, to relevant authorities and questioned why people were hiding behind the veil of unnamed sources to spread a false narrative.
The country's largest airline has been witnessing a divide between the two promoters, Rahul Bhatia and Rakesh Gangwal, since last year over corporate governance and related party transactions. @awnusharma https://t.co/taxkhdVBo6
— CNBC-TV18 News (@CNBCTV18News) July 30, 2019
Gangwal and Rahul Bhatia—promoters of the country’s largest airline IndiGo—are locked in a bitter battle over alleged corporate governance lapses. In signs that the feud between the two promoters is far from over, Gangwal on Tuesday referred to reports that Bhatia’s InterGlobe Enterprises has said there was no evidence to substantiate allegations on related party transactions.
In a strongly-worded statement, Gangwal said he has information to the relevant authorities.
“I wish people had the conviction to be quoted and not hide behind the veil of so-called unnamed ‘sources’ to spread a false narrative in the media,” he said.
InterGlobe Aviation is the parent firm of IndiGo.
Among other issues, Gangwal had raised concerns that various RPTs involving Bhatia’s InterGlobe Enterprises Group were executed without seeking the audit committee’s approval and without seeking competitive bids from third parties.
Flagging concerns about certain questionable Related Party Transactions (RPTs), Gangwal said the shareholders' agreement provides his long-time friend Bhatia unusual controlling rights over IndiGo. In a detailed statement, Bhatia's (IGE)Group said it has nurtured and supported IGAL through its formative and expansion years by making available certain services through related party transactions.
Another issue was about non-appointment of an independent woman director.
InterGlobe Aviation’s board has decided to expand the strength of the board to up to ten members, including four independent directors. Also, there would be one woman independent director.
Currently, the board has six members, including Bhatia and Gangwal.
After the board meeting earlier this month -- where a new policy on related party transactions has been approved -- there were reports suggesting that the issues between the two promoters have been sorted out.
Gangwal and his affiliates hold around 37 percent stake in InterGlobe Aviation while Bhatia’s group owns nearly 38 percent shareholding.
The company, which got listed in 2015, has come under regulatory lens following the complaint by Gangwal about alleged corporate governance lapses.
The allegations have been refuted by Bhatia group.
--With PTI inputs
Updated Date: Jul 31, 2019 07:27:49 IST