BackIndiGo says will respond to corporate affairs ministry soon
IndiGo’s response comes days after Rakesh Gangwal wrote to Sebi in early July, seeking its intervention to curb alleged corporate governance violations by Rahul BhatiaSebi has asked IndiGo to respond by 19 July
PremiumMUMBAI : InterGlobe Aviation Ltd., which operates the country's largest domestic airline IndiGo, on Thursday said that the company will soon respond to the Ministry of Corporate Affairs (MCA) on alleged violations of corporate governance and related-party transactions at the airline.
"The Company will respond to MCA within the prescribed period," the company said in a stock exchange notification.
The response from IndiGo comes days after the airline's promoter and co-founder Rakesh Gangwal wrote a letter to the markets regulator in early July, seeking its intervention to curb alleged corporate governance violations by fellow co-founder Rahul Bhatia at IndiGo.
In an 8 July letter, addressed to Sebi chairman Ajay Tyagi, Gangwal alleged several violations at IndiGo, including those pertaining to related-party transactions, and appointment of senior management personnel, directors and the chairman, who has always been an independent director by convention.
Following Gangwal’s letter, Sebi asked the airline to respond by 19 July.
The board of directors of IndiGo will meet on Friday to approve the financial results of the airline. The board will also consider a proposal to induct new directors at the meeting, Mint had reported on 16 July.
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