IndiGo’s promoters Rahul Bhatia and Rakesh Gangwal do not have differences over multiple issues but just one difference over related party transactions, IndiGo CEO Ronojoy Dutta told CNBC TV-18 in an interview. “They are not differences, it is a difference and it is really administrative,” Ronojoy Dutta said, adding that the promoters are divided on how to deal with the matters related to third-party transactions. Explaining further, he said that IndiGo’s parent company — Rahul Bhatia’s Interglobe — provides services such as lodging, office space to IndiGo and the airline pays the company for the same. Since IndiGo crew needs to stay at various places, Holiday Inn, Sheraton and Novotel are certain hotels for that purpose. “Interglobe has a shareholding in Novotel. So, these are called related party transactions and it is a matter of how you deal with them that the promoters are talking about,” Ronojoy Dutta said.
The feud between Rahul Bhatia and Rakesh Gangwal had surfaced some time back, which certain media reports speculated to be over management control. Same reports also pointed out the possibility that the issue could be about the appointment of expatriates in the top positions of the company. However, the CEO said the promoters are only talking about the issue if there is any need to modify the related party transaction issue in any meaningful way. “Rahul Bhatia owns Interglobe and he is the landlord of our property. He has shareholdings in Novotel. Rakesh Gangwal is the one who is saying I want to take this third party transfers process and change it. We are following the compliance to the law,” Ronojoy Dutta told the news channel. Rakesh Gangwal wants to add another layer to it and that is the issue, he added.
The ongoing altercation between the two promoters could have impacted the shareholders but according to Ronojoy Dutta, the matter does not affect the airline at all. He added that the airline hopes to resolve the issue soon.
