The feud between the promoters of the country's largest domestic airline IndiGo has just intensified, with promoter Rakesh Gangwal on Tuesday stating that he has provided information on related party transactions (RPTs) between IndiGo and co-promoter Rahul Bhatia-controlled InterGlobe Enterprises (IGE) to the 'relevant authorities'.
Gangwal, had earlier in an 8 July letter, addressed to Sebi chairman Ajay Tyagi, alleged several violations at IndiGo including those pertaining to related-party transactions; appointment of senior management personnel, directors and the chairman, who has always been an independent director by convention.
A source close to Rahul Bhatia had told Mint last week that there are no evidence to substantiate the allegations on related-party transactions between the airline and Bhatia-controlled IGE. Gangwal refuted this.
“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," Gangwal said in the statement.
"To address this canard, please note that that I have provided this information to the relevant authorities," Gangwal added.
Bloomberg had reported on 16 July citing Gangwal that he has no desire to sell or raise his stake in IndiGo. Gangwal has a nearly 37% stake in InterGlobe Aviation, while the Bhatia group has more than 38%.
The simmering feud between the two founders and promoters of IndiGo took an ugly turn in early July, with Gangwal seeking the intervention of the Securities and Exchange Board of India (Sebi) to curb alleged corporate governance violations by Bhatia. The charges were denied by Bhatia, who accused Gangwal of trying to dilute the controlling rights of his holding company IGE in the budget airline.