Indigo CEO says promoters’ feud has ‘zero impact’ on airlines

By: |
Published: November 14, 2019 6:44:57 PM

The differences between co-founders and co-promoters -- Rakesh Gangwal and Rahul Bhatia -- came to the fore in July after Gangwal sought market regulator Sebi's intervention to address alleged corporate governance lapses at the company.

Indigo CEO, Ronojoy Dutta, Rakesh Gangwal, Rahul Bhatia, InterGlobe Aviation, Sebi, IGE Group, latest news on indigoThe differences between co-founders and co-promoters — Rakesh Gangwal and Rahul Bhatia — came to the fore in July after Gangwal sought market regulator Sebi’s intervention to address alleged corporate governance lapses at the company. (PTI photo)

Amid ongoing feud between the airline’s promoters, IndiGo CEO Ronojoy Dutta on Thursday said there is “zero impact” on the carrier right now as they are on the same page over the airline’s strategic direction. The differences between co-founders and co-promoters — Rakesh Gangwal and Rahul Bhatia — came to the fore in July after Gangwal sought market regulator Sebi’s intervention to address alleged corporate governance lapses at the company.
They are the promoters of InterGlobe Aviation which operates IndiGo, the country’s largest airline in terms of domestic market share.

About the feud, Dutta said as far as the airline is concerned, it was only directly involved in the Related Party Transactions (RPTs). “That has been resolved completely… Now that RPTs have been removed from the table, we have no more interest in this matter,” he told PTI in an interview here.

Also read: Need to promote apprenticeship to develop high skill levels: Hindustan Unilever Chairman, MD Sanjiv Mehta

In the wake of the allegations, the company has also came under the lens of Sebi and the corporate affairs ministry.
“Right now, it (promoters’ feud) has zero impact. When the RPT issue was there, we were involved. Now, they are doing what they do, and that doesn’t affect us at all,” he said in response to a query about the warring promoters.
According to Dutta, there are some issues between the promoters but that is not affecting the airline.

“If two of the promoters are having a side discussion on some agreement signed 12 years ago, it doesn’t affect us at all. “It is not a overhang on the company because they agree on the direction of the company… there is such unity of view on the strategic direction of the company, really there is no controversy,” he emphasised.

On whether there are concerns about corporate governance ways at the company, Dutta replied in the negative. “Not a concern because the only governance issue was that of RPTs. Otherwise, we are functioning smoothly as a well orchestrated board. Very professionally run,” he said.

On October 1, InterGlobe Enterprises and Bhatia sought arbitration proceedings in the shareholders’ agreement, dated April 23, 2015. The pact was amended on September 17, 2015. The agreement was executed between Bhatia’s InterGlobe Enterprises Group (IGE Group), Gangwal, the Chinkerpoo Family Trust, Shobha Gangwal — the RG Group — and InterGlobe Aviation.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Wipro, TCS, Infy employee? Your US visa chances slid this much in Trump rule
2SoftBank’s Yahoo Japan confirms merger talks with Line, shares jump
3ITC takes 33.42% stake in vending machines start-up