Reports of a truce between IndiGo Airlines (6E, Delhi Int'l) co-founders Rakesh Gangwal and Rahul Bhatia are “false and misleading”, Gangwal stressed in a letter to the board of the airline's parent InterGlobe Aviation Ltd dated August 5 and released to exchanges on August 6, Reuters has reported.

The much-publicised spat between the two stems from disagreements on corporate governance, and these issues remain unresolved, he said.

The Economic Times newspaper reported on July 24 that Meleveetil Damodaran, chairman of IndiGo parent InterGlobe Aviation, had brokered a ceasefire in the row between the co-founders.

Gangwal, who is also a 37% shareholder in InterGlobe, sought the intervention of the Securities and Exchange Board of India (SEBI) regulator in July into alleged corporate governance lapses at the company, which InterGlobe denied.

He complained that IGE Group, a vehicle for Bhatia that owns a 38% stake in InterGlobe, has significant controlling rights over IndiGo, allowing it to carry out alleged “questionable” transactions.

Gangwal said in his letter this week that he refused to support a proposal by the airline to expand its board of directors to ten members, arguing it would benefit IGE by helping it to “rework and dilute” company policy on transactions.