IndiGo crisis: InterGlobe Aviation board meet today amid protestors spat

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Updated: July 19, 2019 7:00:52 AM

According to sources, the board could discuss expanding its composition and including a woman independent director, a mandatory requirement as per the Sebi norms, when it meets to approve results for the April-June quarter.

InterGlobe Aviation, InterGlobe Aviation board, industry news, IndiGo, IndiGo airlines, IndiGo share price, IndiGo news, Bhatia has rejected these allegations and called it an agenda to dilute and diminish the controlling rights of his IGE group. (PTI File photo)

The board of Interglobe Aviation, which runs IndiGo, is set to meet on Friday amid a bitter feud between promoters Rakesh Gangwal and Rahul Bhatia over control of the country’s largest domestic carrier. The meet is expected to be a stormy affair with Gangwal, who has raised issues of corporate governance violations by the board, being present at the meeting.

According to sources, the board could discuss expanding its composition and including a woman independent director, a mandatory requirement as per the Sebi norms, when it meets to approve results for the April-June quarter.

The board, headed by former Sebi chairman M Damodaran, is likely to quiz Gangwal on his allegations of corporate governance lapses by Bhatia and Interglobe Enterprises, controlled by him.

IndiGo’s board comprises Bhatia and Gangwal, besides Damodaran, who serves as the chairman, Bhatia’s wife Rohini Bhatia, Interglobe Technology president Anil Parashar and former World Bank executive Anupam Khanna, an independent director.

Gangwal had demanded increasing the number of independent directors on the board. On July 9, Gangwal made his difference with Bhatia public by seeking market regulator’s intervention to amend the shareholders’ agreement and the Article of Association between them. He alleged irregularities in executing related party transactions (RPTs) with the IGE group and breaching the code of conduct for appointment of directors and senior management.

Bhatia has rejected these allegations and called it an agenda to dilute and diminish the controlling rights of his IGE group. Bhatia, who heads the IGE group, holds about 37.9% stake in IndiGo while Gangwal owns 36.69%.

On his part, Gangwal is likely to seek new norms for undertaking RPTs, including more power for the audit committee, besides convening an extraordinary general meeting to pass a resolution requiring the directors and senior management to strictly adhere to the corporate governance code. Sebi’s deadline for IndiGo to  reply on Gangwal’s allegations expires on July 19.

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