The two co-promoters of IndiGo Rakesh Gangwal and Rahul Bhatia – have taken steps to resolve differences, said an ET NOW report.
The talks between the two feuding camps were brokered by IndiGo chairman M Damodaran.
According to the report, IndiGo will have four independent directors from the current two. Rakesh Gangwal will have one nomination on the board while Rahul Bhatia can nominate five board members, the ET Now news report said.
Sources close to Interglobe enterprise told ET that both the parties have the approved these changes.
“Board will also have a strength of 10 members now. Out of that, 4 will be independent directors, 5 members will be from Interglobe Enterprise and Gangwal will also be a member. The board will also have an independent woman member,” said sources in the know.
When contacted, Gangwal did not comment on the issue terming it ‘ongoing discussions’.
Sources close to Gangwal added that these are something that should have been done long back. “This is something that should have always been there and has only happened after complaints. However, more needs to be done to improve corporate governance,” the source said.
The Bhatia camp, however, is of the view that the RPT was a smokescreen and the real issue is that Gangwal wants dilution of Bhatia’s controlling rights.
“The package proposed by Gangwal where he asks for a change in the control clauses is proof of that,” claims the Bhatia camp.
Sources close to Gangwal said that the complaints are with the markets and other financial regulator alongwith proofs and the inquiry by the agencies will bring out everything.
The spat between the two co-promoters had reached the government’s doorsteps when Rakesh gangwal sought the regulator as well as government’s intervention on the issue of related party transactions which he had earlier highlighted. Rakesh Gangwal had gone to the extent of equating IndiGo to a ‘paan ki dukaan’ (betel shop).
It was followed by an ugly exchange of letters between the two co-promoters in which the Rahul Bhatia Group responded to allegations levelled by Rakesh Gangwal and had said that the ‘paan ki dukaan’ has done well.
