In probably a first such instance in the corporate India, a company has termed information from its co-founder misleading and unreliable.
The rift between the two founders of IndiGo, Rahul Bhatia and Rakesh Gangwal, only seems to be widening as the disagreements continue over matters of implementation of a new policy for related party transactions and time of appointment of an independent woman director.
However, the matter took a turn for the worse when the airline called the website set up by one of its promoters as unreliable and misleading.
“Mr. Gangwal has stated in his letter of August 5, 2019 that he has set up a website to update 'relevant information' as needed. Please note that this website has not been approved or authorized by the company and no reliance should be placed on the contents of this website as it may contain incomplete and therefore misleading information,” IndiGo said in an exchange filing on Tuesday.
According to Gangwal, the website, available at https://governanceindia.com/, has been set up to provide updates on IndiGo's governance matters and to issue statements on his behalf, who, along with his associates, holds about 36.7 percent stake in the airline.
“If important and necessary, I shall put out certain relevant information or statements on this website to either update shareholders, the press and all other stakeholders or correct misinformation and false narratives that unnamed 'sources' plant in the press. I do not have the necessary infrastructure in India or need a PR agency to address these issues and I believe this is an effective way to have my voice heard,” the website reads.
Currently, three updates have been posted on the website, the first one on the Securities and Exchange Board of India (Sebi) filing from July 9 , comment on a whistleblower response posted on July 30 and a letter to directors from August 5.
As of March 31, the two promoters hold 74.93 percent share in the domestic carrier, while the rest 25.07 percent is held by the public. Bhatia and his associates hold the highest stake in the company at 38.26 percent, followed by Gangwal and his associates at 36.68 percent.