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A file photo of IndiGo chief executive Ronojoy Dutta
A file photo of IndiGo chief executive Ronojoy Dutta

Gangwal has no desire to control IndiGo, says CEO Ronojoy Dutta

  • IndiGo CEO did acknowledged about possible differences between within sections within the airline
  • Ronojoy Dutta said in any strong and well-managed company there will always be differences

Mumbai: IndiGo's promoter Rakesh Gangwal doesn't not want control of the company, the airline's chief executive Ronojoy Dutta said in a statement on Saturday evening.

"I am categorically and clearly stating that there is no interest or desire whatsoever on the part of the RG Group (Rakesh Gangwal Group) to take control of the company. Also, to put to rest the messaging on the fact that the RG Group is attempting to renegotiate the Shareholders Agreement, I am placing on record that the RG Group stands by the current SHA which, in any case, expires this October," Dutta said adding, "I don’t think Mr. Gangwal could have been more clear and explicit on his intentions and I thank him for authorizing me to make this statement on his behalf."

However, Dutta did acknowledged about possible differences between within sections within the airline, stating that in any strong and well-managed company there will always be differences.

"And, yes, there may be differences currently on certain matters but the Company has a great track record of resolving issues and coming out ahead. If the current differences were to not get resolved, you shall certainly hear about it; however, it serves no purpose speculating about it," he added.

Mint had on 17 May reported that promoters of InterGlobe Aviation Ltd ( IndiGo’s operator) Rakesh Gangwal and Rahul Bhatia have hired law firms to pre-empt their differences over a shareholders’ agreement from snowballing into a long legal battle for control of India’s largest domestic airline. The report added that Gangwal and Bhatia, also the airline's founders are trying to defuse the situation and have roped in Haigreve Khaitan and Jyoti Sagar, founders of law firms Khaitan & Co. and J Sagar Associates (JSA).

"It is true that the IGE group is represented by the law firm of JSA and the RG Group is represented by the law firm of Khaitan & Company. These prestigious law firms have been on retainer by the founders since at least the time of the IPO of the Company in 2015 and they continue to represent the promoters on various ongoing matters as it relates to their shareholding in IndiGo, Dutta added in the statement.

Dutta said that the airline remains committed to its path of a rapid growth within India and to overseas destinations.

He added that companies go through periods of transition as they evolve from one phase of their growth to another and a little bit of turbulence during these transition phases is neither unusual nor unwelcome.

"Most importantly, the promoters and the Board have worked as a team in making these management changes. We would urge the press not to confuse every management change as a sign of dissonance at the top," he added.

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