IndiGo co-founder Rakesh Gangwal on Tuesday said he had submitted relevant information to regulators on ‘questionable’ related-party transactions (RPT) between IndiGo and Rahul Bhatia's InterGlobe Enterprises (IGE).
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.
The industry veteran was clarifying on a media report which quoted an IGE official that said there is no evidence to support Gangwal's allegations on the related-party transactions between IndiGo and IGE and while regulators had been seeking similar information for the past 10 days, none has been forthcoming.
“The IGE group has also said there is not a shred of evidence to substantiate allegations on related-party transactions between the airline and IGE because there are no whistleblowers as claimed by Gangwal," his statement said, quoting the media report.
"To address this canard, please note that that I have provided this 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," Gangwal clarified in his statement.
The rift between the two promoters came out in public eye when the airline informed the exchanges that Gangwal has written a letter to Sebi on July 8 seeking regulatory intervention with regard to his disagreements with Bhatia on corporate governance norms and related party transactions. Bhatia's InterGlobe Enterprises has denied the allegations made by Gangwal and had called them baseless.
While the outcome of the board meeting that took place at IndiGo on July 19 and July 20 had led to some progress in resolving the dispute between two promoters with the decision of appointing independent directors including an independent woman director, the two sides are yet to reach a truce.
As of March 31, the two promoters hold 74.93 percent share, while the rest 25.07 percent is held by the public. Rahul Bhatia and his associates hold the highest stake in the company at 38.26 percent, followed by Rakesh Gangwal and his associates at 36.68 percent.
First Published: IST