IndiGo Promoter Feud: Co-Founder Rahul Bhatia Files Arbitration Request In London Court
InterGlobe Aviation Ltd. promoters—InterGlobe Enterprises and Rahul Bhatia—have sought arbitration proceedings in London amid differences with co-promoter Rakesh Gangwal.
This dispute relates to claims of Bhatia’s IGE Group against the Gangwal’s RG Group regarding compliance with the shareholders agreement and the articles of association of the company and damages, according to statement by the operator of IndiGo airlines. The two entities have submitted a request for arbitration on Oct. 1 to the London Court of International Arbitration.
Under the request for arbitration, no relief has been sought against the company (InterGlobe Aviation).InterGlobe Aviation Statement
The request has been submitted under the shareholders’ agreement, dated April 23, 2015. The pact was amended on Sept. 17, 2015, the filing said.
The agreement was executed between Bhatia’s InterGlobe Enterprises Group (IGE Group), Gangwal, the Chinkerpoo Family Trust, Shobha Gangwal and InterGlobe Aviation Ltd.
InterGlobe Aviation has been named as a respondent as it is a party to the shareholders agreement, the filing said. “However, presently, no monetary claim, including any compensation or penalty, has been sought against the Company,” it added.
Bringing the differences between long-time friends and promoters of IndiGo into open, Gangwal, in July, had sought the Securities and Exchange Board’s intervention in alleged corporate governance lapses at the company. The allegations were rejected by Bhatia group.
Shares of the airline declined 1.1 per cent to close at Rs 1,870.85 on the BSE on Tuesday.