Mumbai: There is a piece of good news at private carrier Indigo. The warring promoters of the company are ready to bury the hatchat headed for a truce and the finer details of an agreement resolving all contentious issues are being drawn up by the board, people familiar with the matter said.
The promoters — Rakesh Gangwal and Rahul Bhatia — have unanimously agreed to expand the board of InterGlobe Aviation, IndiGo’s parent company, and rework the process for carrying out related party transactions (RPTs), said the persons quoted above, requesting anonymity.
“All outstanding issues are being resolved,” one of the persons said, adding both sides were keen to put the past behind them and move forward.
When contacted, Gangwal said, “I do not wish to comment on ongoing board discussions. However, I hope that we are able to resolve these issues.”
The dispute between the promoters figured prominently at a board meeting held on July 19 and 20 to consider the April-June earnings of the company.
In the meeting, the board decided to amend the Articles of Association (AoA) of IndiGo to add up to 10 members, including four independent directors.
“The said amendment of the Articles will be subject to the approval of the shareholders at the forthcoming annual general meeting of the company,” IndiGo said in an exchange filing on July 21.
More independent directors, including the addition of an independent woman director, on the board and straightening out questionable related party transactions (RPTS) were the principal demands of Gangwal.
On July 2, Gangwal asked market regulator Sebi to examine the two issues, escalating his simmering differences with co-founder Rahul Bhatia into a bitter public quarrel. Bhatia’s InterGlobe Enterprises had denied the allegations made by Gangwal and had called them baseless.
IndiGo has responded to Sebi regarding the complaints filed by Gangwal, said the persons quoted above. The airline will also explain the matter to the corporate affairs ministry by the end of this week and officials have met the corporate affairs secretary in this regard, they said.
IndiGo has submitted to Sebi a report by consultancy firm EY that was commissioned by InterGlobe chairman M Damodaran. Bhatia’s IGE Group had said the report flagged only procedural lapses, refuting Gangwal’s claims of dubious transactions.
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