IndiGo promoters’ feud takes serious turn; Gangwal seeks Sebi’s intervention

The simmering feud between the IndiGoNSE -11.97 % promoters took a turn for the worse on Tuesday after one of the warring partners complained to the Securities and Exchange Board of India (Sebi) about questionable corporate governance practices, alleging that even a `paan ki dukaan’ would have handled things better.

Rakesh Gangwal, who holds 37% in IndiGo compared with co-promoter turned rival Rahul Bhatia’s 38%, said in his complaint to the market regulator that a shareholders’ agreement between himself and Bhatia gave the latter “unusual controlling rights over IndiGo” and that these rights and “a lack of diversity and paucity” of independent directors “may very well be at the root of why governance matters have taken such a back seat at IndiGo.”