Bhatia deals trigger turbulence
The feud between IndiGo founders Rakesh Gangwal and Rahul Bhatia is an outcome of the related party transactions (RPTs) that have been entered by the company with the IGE group, which represents Bhatia and his affiliates.
Rakesh Gangwal, co-founder InterGlobe Aviation, who along with his affiliates hold 37 per cent in the firm, have questioned these transactions. He alleged the deals were executed without seeking approval of the audit committee. Neither was competitive bids taken from other parties.
Gangwal said various such transactions had even been signed with retrospective effect.
Bhatia has countered Bhatia saying IndiGo had received the most favoured treatment in each RPT. Besides, under new chairman M. Damodaran, extensive discussions have been held on the policy for RPTs and steps identified, which are under implementation even today.
