Even as IndiGo spat deepens with the government asking SEBI to probe the role of all board members and every entity linked to promoters' groups, ‘pan ki dukaan’ (betel shop) is making headlines for some interesting reason.
Even as IndiGo spat deepens with the government asking SEBI to probe the role of all board members and every entity linked to promoters’ groups, ‘pan ki dukaan’ (betel shop) is making headlines for some interesting reason. It all started when one of the warring partners and airline co-founder Rakesh Gangwal, who holds 37 per cent in IndiGo, complained to the capital markets regulator SEBI over questionable corporate governance practices, alleging that even a `paan ki dukaan’ would have handled things better. He levelled charges against the other Rahul Bhatia, co-promoter and holder of 38 per cent shareholding in the airline, questioning multiple related-party contracts between IndiGo and latter’s InterGlobe Enterprises.
On Friday, Rahul Bhatia replied to the allegations as much ado about nothing. His group said that the company is well run, financially sound and managed by competent set of managers. His InterGlobe Enterprises (IGE) said that the “Paan ki dukaan has apparently done well and continues to do well; it is financially sound; it is well run and managed by a competent set of managers.”
The two founders have entered into a public fight over the balance of power in IndiGo. Rakesh Gangwal had earlier publicly questioned the corporate governance and ethics of the airline on issue of related party transactions with IGE, a holding company of IndiGo. However, Rahul Bhatia’s group has said that the transactions are a fraction of the revenue of the India’s largest airline.
“Corporate governance is not about levelling baseless charges. It is about ensuring that the company’s interests are also those of other stakeholders are protected and not harmed,” IFE said in a statement.
Shares of InterGlobe Aviation closed Friday at Rs 1,348, down 6.50, or 0.48 per cent on NSE.