Centre will scrutinise the disputed shareholder pact between Rakesh Gangwal and Rahul Bhatia, even as it lets the Securities and Exchange Board of India (Sebi) look into Gangwal's accusations of governance failure in the firm, Mint reported, citing sources.
"If the government’s scrutiny leads to the conclusion that the shareholder agreement was in violation of the Companies Act, the agreement which gives certain special rights to a company controlled by Bhatia could get annulled," one of the sources told the paper. Gangwal recently met senior officials in the government, the report added.
Gangwal, in a letter to Sebi, has raised concerns over violation of governance norms and his discomfort with related party transactions (RPT), alleging that these transactions benefited Bhatia.
The Registrar of Companies under the Ministry of Corporate Affairs, as well as, market regulator Sebi, take special interest when shareholders with substantial stakes raise issues about misgovernance in a company.
InterGlobe Enterprises, which is controlled by Bhatia, has two group entities namely, The IGE Group and InterGlobe Aviation Limited (IGAL), and gives it the power to appoint three out of six directors of IndiGo, nominate a chairman as well as appoint a managing director and chief executive. However, the agreement requires Gangwal and his affiliates to vote alongside the IGE Group on the appointment of directors.
Gangwal and his associates hold a 37 percent stake in the company, while Bhatia and his associates hold 38 percent stake.
Email sent to the company by Mint was left unanswered till print time.
First Published: IST