IndiGo promoter differences: Gangwal seeks SEBI intervention


NEW DELHI: The differences between the promoters of India’s biggest airline, IndiGo, seem to be widening. Co-founder and promoter Rakesh Gangwal has now written to the Securities and Exchange Board of India (SEBI) seeking regulatory intervention on his grievances.

The low cost carrier (LCC) on Tuesday informed BSE that the “board of directors of InterGlobe Aviation limited (parent company of IndiGo) has received a letter dated July 8, 2019, from Rakesh Gangwal, the copy of which is already with the stock exchanges, informing the company that he has written a letter to SEBI seeking regulatory intervention on his alleged grievances. 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.”

IndiGo has admitted that there are some differences between its promoters and co-founders Rahul Bhatia and Rakesh Gangwal. The two have hired law firms to sort this out.

On May 18, 2019, IndiGo CEO Ronojoy Dutta issued a statement that did not deny the differences but said:“…in any strong and well-managed company there will always be differences. And, yes, there may be differences currently on certain matters but the company has a great track record of resolving issues and coming out ahead. If the current differences were to not get resolved, you shall certainly hear about it; however, it serves no purpose speculating about it.”

Both Gangwal and Bhatia Groups have 37-38% stake in the airline.

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