IndiGo co-founder seeks probe into deals with cos owned by partner

MUMBAI/NEW DELHI: Flagging off corporate governance norms, IndiGo co-founder Rakesh Gangwal has sought market regulator Sebi’s intervention to probe transactions between the carrier and other companies in which partner Rahul Bhatia’s InterGlobe Enterprises (IGE) has stake. Sebi has asked IndiGo to respond to Gangwal’s concerns by July 19.
In his letter to Sebi, Gangwal has alleged that IGE, which controls the management of IndiGo, has built “an ecosystem of other companies that would enter into dozens of related party transactions with the airline”. He also said IGE, which has 38% stake in IndiGo, has the right to unilaterally appoint three out of six directors on the board of the carrier and that the “chairman of the board shall be appointed on the nomination of IGE ”. IGE, said Gangwal, also has the “right to nominate and appoint” the MD, CEO and president at IndiGo.