InterGloble Aviation counters Rakesh Gangwal’s claim

InterGlobe Aviation Ltd (IGAL) has clarified that the existence of Related Party Transactions (RPTs) were disclosed at the time of the IPO in 2015.

This was one of the main accusations that Rakesh Gangwal, co-founder, IndiGo Airlines, had made in his submission to SEBI late on Tuesday.

“Post the IPO, many of the RPTs have ceased to exist while others have been renewed on an arm’s length basis as part of the normal course of business,” the airline said in a media statement.

The statement adds that InterGlobe Enterprises and its Group Entities (IGE) Group has ensured that no entity of the group takes advantage under the RPTs. “Without exception, IGAL has received more favourable treatment from the IGE Group entities as compared to their other customers,” the statement said. It added that the materiality of the transactions for IGAL is not significant, as it was only 0.53 per cent of its consolidated turnover for fiscal 2018-19.