InterGlobe Enterprises Private Limited (IGE Group) and its owner Rahul Bhatia have submitted a request for arbitration to the London Court of International Arbitration to resolve an ongoing spat between Bhatia and Rakesh Gangwal, the two co-founders of IndiGo Airlines (6E, Delhi International).
The Indian LCC said in a stock market filing that the request for arbitration "relates to claims of the IGE Group against the [Gangwal's investment vehicle] RG Group regarding, inter-alia, compliance with the Shareholders Agreement and the articles of association of the company and damages". No monetary claims have been sought against IndiGo.
No further details regarding the request have been made public. The shareholders agreement from 2015 is due to expire shortly.
The two co-founders of India's largest airline have been involved in a bitter dispute over corporate governance standards for the last few months. IGE Group and Bhatia own a 38% stake in InterGlobe Aviation Ltd, IndiGo Airlines' parent, while Gangwal and his RG Group control a 37% stake.
In July, Gangwal has sent a letter to the Securities and Exchange Board of India (SEBI) asking the regulator to probe alleged corporate governance shortcomings at the LCC. In it, he accused Bhatia of enjoying and abusing "unusual controlling rights over IndiGo". Bhatia's group responded by saying that the company was well run, financially sound, and managed by competent leadership, adding that no abuse of rights had occurred.
The 25% stake not owned by either Bhatia or Gangwal is publicly traded on the Indian National Stock Exchange.
