IndiGo Promoter Dispute: Don’t Hide Behind ‘Unnamed Sources’, Says Rakesh Gangwal
Rahul Bhatia’s InterGlobe Enterprises has said there was no evidence to substantiate allegations on related party transactions.
In signs that the IndiGo promoter dispute is far from over, InterGlobe Aviation Ltd. co-founder Rakesh Gangwal on Tuesday said he has provided all information, including those related to whistleblowers, to relevant authorities and said he wonders why people were hiding behind the “veil” of unnamed sources to spread a false narrative.
Gangwal was referring to reports that Rahul Bhatia’s InterGlobe Enterprises Group has said there was no evidence to substantiate allegations on related party transactions.
Gangwal and Bhatia, co-promoters of IndiGo, are locked in a bitter battle over alleged corporate governance lapses at India’s largest airline.
“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,” Gangwal said in a strongly worded statement.
Among other issues, Gangwal has raised concerns that various RPTs, involving Bhatia’s IGE Group, were executed without seeking the audit committee’s approval and competitive bids from third parties. Another issue was about non-appointment of an independent woman director on the IndiGo board.
InterGlobe Aviation’s board has decided to expand its strength to up to 10 members, including four independent directors—one of which will be a woman.
The board, at present, has six members including Bhatia and Gangwal.
After an InterGlobe board meeting earlier in July where a new policy on related party transactions was 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 has nearly 38 percent shareholding.
The company, which got listed in 2015, has come under the regulatory scanner following a complaint by Gangwal about alleged corporate governance lapses.
The allegations have been refuted by Bhatia’s group.
On Tuesday, IndiGo shares fell 2.17 percent to Rs 1,545.10 apiece on the BSE while the benchmark Sensex shed 0.77 percent to end the day at 37,397.24 points.