A feud atop Asia’s biggest budget airline by market value deepened after one of its co-founders accused the other of dubious governance practices, roiling the company’s shares and raising concerns that the dispute will drag on.
Billionaire Rakesh Gangwal informed IndiGo’s operator, InterGlobe Aviation Ltd., that he flagged some of his governance concerns about co-founder Rahul Bhatia to the Securities and Exchange Board of India, the company said in a statement late Tuesday. That prompted queries from the regulator, which InterGlobe will respond to by July 19, it said.
The complaints centered on what Gangwal described as “unusual controlling rights” held by Bhatia, who couldn’t be reached for comment by Bloomberg. That level of power paved the way for Bhatia to push through related-party transactions and major decisions without proper safeguards or protocols, according to Gangwal.
