Tuesday, 29 November, 2022
HomeEconomySebi seeks details from IndiGo after promoter Rakesh Gangwal flags governance issues

Sebi seeks details from IndiGo after promoter Rakesh Gangwal flags governance issues

IndiGo promoter Rakesh Gangwal has accused co-founder Rahul Bhatia and his firms of indulging in some questionable transactions.

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New Delhi: Investigating complaints from a promoter about alleged irregularities at IndiGo, markets regulator Sebi has sought details from the airline’s listed parent firm InterGlobe Aviation by July 19.

One of the promoters, Rakesh Gangwal, has sought Sebi’s intervention in addressing his grievances, InterGlobe Aviation said in a regulatory filing on Tuesday.

In a statement, Gangwal said his letter lists out certain serious concerns regarding governance matters at IndiGo.

Gangwal, also a co-founder, along with his affiliates has around 37 per cent stake in the company. IndiGo is the country’s largest airline.

Also read: Low-cost king IndiGo is coming for Emirates

The company told stock exchanges that its board of directors has received a letter from Gangwal.

Sebi has been probing the matter since reports surfaced about differences between the two key promoters, sources said. Reportedly, there are differences between Gangwal and Rahul Bhatia over certain related-party transactions.

“Sebi has in the mean time asked the company to give its response to this letter by July 19, 2019, with which the company will comply,” the filing said.

Shares of InterGlobe Aviation closed marginally lower at Rs 1,565.75 on the BSE.

“We are big believers in the long-term potential of IndiGo and its business and operational model.

“However, we also firmly believe that IndiGo can only realise its true potential and be a world class company if it has both – a world class business and operational model as well as world class governance standards,” he said in the statement.

Also read: Indigo dumps troubled Pratt & Whitney A320neo engine, places $20 billion order with rival


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