Multiple related-party contracts between IndiGo and promoter Rahul Bhatia’s InterGlobe Enterprises have been questioned by co-promoter Rakesh Gangwal. In a sealed letter to market regulator Sebi, Gangwal has listed the agreements, accusing that they were entered without approval from the audit committee.
InterGlobe has, however, dismissed the claims, saying Gangwal has not provided any evidence supporting the charges. Bhatia and Gangwal, who together founded IndiGo in 2005, are at loggerheads accusing each other of fraud.
Taking a jibe at Gangwal’s labelling of IndiGo as “paan ki dukaan (betel shop)”, Bhatia said there was no abuse of rights, and Gangwal’s proposal for convening an extraordinary general meeting (EGM) was rejected on the basis of a legal opinion obtained by the board.
