IndiaCatalog.com
India News
Search Web Directory
News Home
IndiGo promoters' spat out in open, Rakesh Gangwal seeks Sebi's intervention
Posted on 10th July 2019
Differences between the promoters of the country's largest airline IndiGo came into public on Tuesday with Rakesh Gangwal alleging serious governance lapses by co-founder Rahul Bhatia who had earlier termed his demands as unreasonable.

With the issues brewing for nearly a year, Gangwal has sought markets regulator Sebi's intervention to address the problems.

In a filing to the stock exchanges, InterGlobe Aviation, the parent form of IndiGo, said its board of directors has received a letter from Gangwal and Sebi has also sought a response on the letter.

The markets regulator has been probing the matter since reports surfaced about differences between the promoters in May, sources said.

"Sebi has in the meantime asked the company to give its response to this letter by July 19, 2019, with which the company will comply," the filing said.

Alleging that the company has "started veering off" from the core principles and values of governance, Gangwal has said that even a "paan ki dukaan" (betel shop) would have managed matters with more grace.

Flagging concerns about certain questionable Related Party Transactions (RPTs), Gangwal said the shareholders' agreement provides his long-time friend Bhatia unusual controlling rights over IndiGo.

"Beyond just questionable Related Party Transactions, various fundamental governance norms and laws are not being adhered to and this is inevitably going to lead to unfortunate outcomes unless effective measures are taken today," the letter said.

Gangwal and his affiliates have around 37 percent stake in InterGlobe Aviation while Bhatia and his affiliates (IGE Group) have about 38 percent.

After Gangwal wrote to the board seeking an extraordinary general meeting, Bhatia, on June 12, opposed the proposal.

In the June 12 letter, Bhatia alleged that Gangwal had a hidden agenda and had made a package proposal and was not willing to discuss the RPT issue in isolation.

IndiGo is the country's largest airline with a market share of 49 percent at the end of May. The carrier has more than 200 planes and operates around 1,400 flights daily.

Already, the aviation industry is grappling with multiple headwinds, including the shuttering of once-storied Jet Airways due to cash crunch.

Rooted in a deep trust built over a decade-long friendship and no desire to have any meaningful control of the company, Gangwal said he had entered into a shareholders' agreement that provides Bhatia unusual controlling rights over IndiGo.

The IGE Group's rights include those to appoint three out of six directors, nominate and appoint Chairman, CEO, President as well as a voting arrangement that requires Gangwal and his affiliates to vote alongside the Group on the appointment of directors, as per the letter.

"While we aren't questioning the independence of the current Chairman in his decision making, we are questioning the designation of such an individual as 'independent'.

"The process of appointing an Independent Chairman at IndiGo is the classic 'Hobson's choice' and a sophisticated way to circumvent Sebi rules...," the letter said.

In a statement on Tuesday, Gangwal said his letter lists out certain serious concerns regarding governance matters at IndiGo.

"We are big believers in the long-term potential of IndiGo and its business and operational model.

"However, we also firmly believe that IndiGo can only realise its true potential and be a world class company if it has both - a world-class business and operational model as well as world-class governance standards," the statement said.

A copy of the letter has also been sent to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Civil Aviation Minister Hardeep Singh Puri and Commerce Minister Piyush Goyal among others.

Gangwal has been seeking an Extra-Ordinary General Meeting (EGM) to put in place reasonable procedures and safeguards with respect to related party transactions with Bhatia and his affiliates.

Among the issues flagged by him are that various RPTs with the IGE Group were executed without seeking the audit committee's approval and without seeking competitive bids from third parties, and non-appointment of an independent woman director.

Gangwal has also sent a separate letter, including attachments and information sources, to the Sebi.

The company is chaired by former Sebi chief M Damodaran. Apart from Gangwal, Bhatia and his wife Rohini Bhatia, former World Bank executive Anupam Khanna and chartered accountant Anil Parashar are board members. IndiGo went for initial public offer in 2015.

Related Companies: Securities and Exchange Board of India ( SEBI )   

Other Latest News
Wipro inks pact with Indian Institute of Science for research in robotics, 5G
Posted on 20th August 2019
Wipro Limited on Tuesday announced a strategic partnership with the Indian Institute of Science (IISc) to conduct advanced applied research in autonomous systems, robotics and 5G space. The two organisations have jointly set up the Wipro IISc Research and Innovation Network (WIRIN), an industry academia collaboration unit.

Yes Bank shares tumble 7% on fraudulent transactions at CG Power and Industrial Solutions
Posted on 20th August 2019
Shares of Yes Bank plunged more than 7 per cent after the risk and audit committee of CG Power and Industrial Solutions in which the private lender owns more than 12.79 per cent stake said there were some unauthorized transactions by certain employees of the company. CG Power also received a letter from a particular financing company regarding a certain interest payment failure which the Operations Committee of the company was unable to trace or ascertain from the financials of the company, according to the exchange filing.

SBI announces special car, personal, education loan benefits ahead of festive season
Posted on 20th August 2019
India's biggest bank State Bank of India (SBI) has announced special offerings ahead of this festive season for retail customers across different product categories: auto/car loan, personal loan, education loan and home loan. SBI has waived processing fees on car loans during this festival season. In addition, SBI is offering "lowest" interest rate starting from 8.70% to customers opting for car loan, with no escalation in interest, the bank said.

Sebi likely to ease share buyback norms for NBFC
Posted on 20th August 2019
Mumbai: In the wake of the liquidity crisis hitting the NBFCs and housing finance companies (HFCs), securities market regulator Sebi might ease share buy-back norms for these firms.

The proposal is expected to be presented at the regulator's board meet on Wednesday.


NTPC to set up 5,000-MW ultra mega solar park in Gujarat, Rajasthan
Posted on 20th August 2019
NTPC, India’s largest power producer, is planning to set up ultra mega solar parks (UMSPs) of 5,000 MW capacity across solar radiation-rich states of Gujarat and Rajasthan to help India meet its 2022 renewable energy target, and to reduce its overall dependence on fossil fuel. NTPC chairman and MD Gurdeep Singh said the first ultra mega solar park will come up in Kutch district of Gujarat, while the next is planned in Rajasthan. “We have identified the location, and the process for acquisition of land will start soon in Kutch. We plan to invite the bids for the first phase of the park by March 2020,” Singh said.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for IndiGo promoters' spat out in open, Rakesh Gangwal seeks Sebi's intervention
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for IndiGo promoters' spat out in open, Rakesh Gangwal seeks Sebi's intervention

Most Read News

IOC to invest Rs 2 lakh cr to expand operations

Bharti Airtel, Vodafone Idea shares tumble after Mukesh Ambani announces Reliance Jio’s ambitious plan

Aramco to invest $15bn in Reliance Industries Limited

Yes Bank shares fall to 5 year low; board’s capital raising committee to consider issue price on Aug 14

Sensex sinks over 300 points; metal, auto stocks drag

More India News

Photo Gallery

Tata Manza(11 Images)Tata Manza
Siddharth(12 Images)Siddharth
Karthika(10 Images) Karthika
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement