InterGlobe Aviation, the company that operates IndiGo Airlines, paid Rs 2.10 crore to Securities and Exchange Board of India (SEBI) to settle a pending case.
SEBI has disposed of adjudication proceedings against InterGlobe Aviation following the settlement.
The proceedings were initiated after IndiGo co-founder Rakesh Gangwal filed several complaints with SEBI in July 2019 alleging violations of corporate governance norms, related party transactions, failure in making a timely intimation of important information to board of directors among others at IndiGo.
Following the complaints, SEBI had issued a show-cause notice dated November 10, 2020 to InterGlobe Aviation, where Rahul Bhatia's InterGlobe Enterprises is the majority shareholder, containing allegations on account of multiple LODR ( Listing Obligations and Disclosure Requirements) regulations.
Rahul Bhatia and Gangwal, along with their families, each control stakes of slightly less than 40 percent in InterGlobe, giving them both a major say in its strategy and plans.
The two promoter groups hold 74.85 percent share, while the rest 25.15 percent is held by the public. Bhatia and his associates hold the highest stake in the company at 38.21 percent, followed by Gangwal and his associates at 36.64 percent.
Post the show-cause notice, IndiGo proposed to settle the proceedings "without admitting or denying the findings of fact and conclusions of law" and filed a settlement application with SEBI to settle the case, SEBI said in its order.
The settlement terms of InterGlobe Aviation were placed before the High powered advisory committee on January 25, 2021 and it recommended the adjudication proceedings to be settled on a payment of Rs 2.10 crore.
(Edited by : Aditi Gautam)
First Published: IST