NEW DELHI: The government has sought an explanation from IndiGo on complaints of alleged misgovernance levelled by the airline’s co-founder Rakesh Gangwal, something denied completely by the other co-founder Rahul Bhatia and the Bhatia-family controlled Inter-Globe Enterprises (IGE).
IndiGo on Thursday told the BSE that it has “received a communication from the ministry of corporate affairs, Office of Registrar of Companies, National Capital Territory of Delhi and Haryana (MCA) vide its letter dated July 17, 2019, requiring the company to furnish certain information/explanations (under) Companies Act, 2013, in relation to complaint dated July 8, 2019 received from Rakesh Gangwal… The company will respond to MCA within the prescribed period.”
Gangwal has complained to Sebi about Bhatia’s control on IndiGo and appointment of the airline’s top executives, apart from the airline entering into related-party transactions (RPTs) with IGE Group companies. The Bhatia Group has denied all these charges, saying the RPTs were disclosed at the time of IPO in 2015 and “materiality of the transactions for (IndiGo) is not significant as… it is only 0.53% of (Indi-Go’s) consolidated turnover for FY 2018-19.” The inquiry from the government comes even as the board of the airline company is scheduled to meet on Friday to consider quarterly financial results. The meet is also likely to discuss the differences between the promoters over corporate governance matters.
IndiGo on Thursday told the BSE that it has “received a communication from the ministry of corporate affairs, Office of Registrar of Companies, National Capital Territory of Delhi and Haryana (MCA) vide its letter dated July 17, 2019, requiring the company to furnish certain information/explanations (under) Companies Act, 2013, in relation to complaint dated July 8, 2019 received from Rakesh Gangwal… The company will respond to MCA within the prescribed period.”
Gangwal has complained to Sebi about Bhatia’s control on IndiGo and appointment of the airline’s top executives, apart from the airline entering into related-party transactions (RPTs) with IGE Group companies. The Bhatia Group has denied all these charges, saying the RPTs were disclosed at the time of IPO in 2015 and “materiality of the transactions for (IndiGo) is not significant as… it is only 0.53% of (Indi-Go’s) consolidated turnover for FY 2018-19.” The inquiry from the government comes even as the board of the airline company is scheduled to meet on Friday to consider quarterly financial results. The meet is also likely to discuss the differences between the promoters over corporate governance matters.
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