Wednesday, July 10, 2019

IndiGo co-founder turns to SEBI over alleged corporate governance violation

New Delhi: One of the co-founders of India`s largest airline IndiGo has alleged violation of corporate governance rules at parent company Interglobe Aviation Ltd and asked the securities regulator to intervene.

The move appears to indicate that a boardroom dispute is escalating after a report in May that the co-founders and two largest shareholders of India`s largest airline were at odds over its expansion.

In a letter to the Securities and Exchange Board of India (SEBI), co-founder Rakesh Gangwal alleged the company`s board decisions were in defiance of governance protocols and laws.
SEBI, in its role as a stock market regulator, is empowered to protect the rights of investors in listed companies.

Co-founders Gangwal and Rahul Bhatia, along with their respective families, each control stakes of slightly less than 40 percent in the airline`s holding company, giving them both a major say in its strategy and plans.

"I have vigorously attempted for almost a year to persuade the company to shore up its governance standards, and all my attempts have been thwarted by the IGE Group," Gangwal said in his letter to SEBI, published on the Bombay Stock Exchange website.
10/07/19 Reema Sharma/ZeeNews

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