The simmering feud between the two founders of InterGlobe Aviation Ltd, which runs India’s largest airline, took an ugly turn, with Rakesh Gangwal seeking the regulator’s intervention to curb alleged governance violations by co-founder Rahul Bhatia.
The charges were denied by Bhatia, who accused Gangwal of trying to dilute the controlling rights of his holding company InterGlobe Enterprises Pvt. Ltd (IGE) in the low-fare carrier, IndiGo.
In an 8 July letter, addressed to Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi, Gangwal alleged several violations at IndiGo including those pertaining to related-party transactions; appointment of senior management personnel, directors and the chairman, who has always been an independent director by convention.
“The onus is now on the management and Sebi to probe the allegations, which appear to be serious in nature,” said Shriram Subramanian, founder of InGovern Research, a proxy advisory firm. Read More