IndiGo promoters Rakesh Gangwal and Rahul Bhatia have finally held out an olive branch, ending a months-long dispute between them, a news channel reported. While the finer details of the truce are awaited, Gangwal and Bhatia have arrived at an agreement after the public spat, sources told CNBC-TV18. In the board meeting held on July 19 and 20, along with considerations on April-June earnings of the airline, the matter between Gangwal and Bhatia was also discussed. The promoters have finally settled on operational issues and airline strategy, the sources told the news channel.
What was the issue between the two promoters?
Early in July, IndiGo’s Rakesh Gangwal had written a 14-page letter to capital markets regulator Sebi, alleging serious governance lapses at the airline. His primary concern, though, was the excess control that IndiGo’s parent company InterGlobe exercises over pivotal decisions in India’s largest airline. Gangwal even went to the extent of saying that a “paan ki dukaan” would have handled the matters with more grace.
On Rahul Bhatia’s part, he too wrote a several-points rebuttal to Gangwal’s claim and denied the accusations. He instead put the blame on Gangwal for trying to dilute the rights of InterGlobe.
After the news of dispute between the promoters surfaced, IndiGo CEO Ronojoy Dutta wrote a letter to the company’s employees, in order to assuage their fears. Dutta said that the “difference of opinion” between IndiGo promoters will not hamper the airline’s functioning, adding that the issue will be sorted eventually.
Meanwhile, shares of Interglobe Aviation gained on Wednesday afternoon, following reports that the promoters have reached a truce. IndiGo share price jumped by nearly 1% to hit the day’s high at Rs 1,547.35. The stock gained nearly 6% from lows after CNBC TV18 reported that promoters have called a truce, citing sources. Finer details of the agreement between promoters are being worked out, said the channel further.