Since IndiGo Airlines (6E, Delhi International) co-founder and 37% shareholder Rakesh Gangwal sought the intervention of the Securities and Exchange Board of India (SEBI) into alleged corporate governance lapses at the company, the carrier's parent InterGlobe Aviation (IGAL) has countered his claims, denying all allegations, The Economic Times has reported.
In a statement on July 10, InterGlobe Enterprises (IGE) Group, a vehicle for fellow co-founder Rahul Bhatia that owns a 38% stake in IndiGo, claimed that none of IGE's entities had exploited related party transactions and had in fact treated the carrier more favourably than other customers.
“Without exception, IGAL has received more favourable treatment from the IGE Group entities as compared to their other customers,” the statement said.
Bhatia's group elaborated in a new statement on July 12 that the company was well run, financially sound, and managed by competent leadership, adding that no abuse of rights had occurred and that Gangwal's proposal for convening an Extraordinary General Meeting had been rejected.
"Corporate governance is not about levelling baseless charges. It is about ensuring that the company's interests as also those of other stakeholders are protected and not harmed," the group said.
SEBI has sought details from the Board of Directors of IGAL against Gangwal's complaint by July 19. As the war of words between the two co-founders continues, IndiGo CEO Ronojoy Dutta has assured employees in a memo that the airline's mission, direction, and growth strategy remain “unchanged and firmly in place,” Reuters reported.
