Govt seeks IndiGo parent’s response on co-founder’s charges

After Sebi, the ministry of corporate affairs (MCA) has sought “comments” from Interglobe Aviation that runs IndiGo on the allegations of lapses of corporate governance at the company levelled by co-promoter Rakesh Gangwal. An official source said on Tuesday that the ministry would expect a detailed response from Interglobe in about 2-3 weeks.

Once the company submits its reply, the MCA will examine if there has been any violation of the Companies Act. “So far, there is no need to press the panic button. But since grave allegations have been made by none other than the co-promoter, the government is looking into the issue,” said the source. In case the Articles of Association (AoA) and the shareholders’ agreement are not in sync with the Companies Act, it could prompt the relevant authorities to act.