Thursday, July 11, 2019

IndiGo Shareholder Pact to Be Checked by Govt for Violations

The government will scrutinise a disputed shareholder pact between Rakesh Gangwal and Rahul Bhatia, the founders of InterGlobe Aviation Ltd that runs India’s largest airline IndiGo, even as it will let the markets regulator look into Gangwal’s allegations of governance failure in the company.

If the government’s scrutiny leads to the conclusion that the shareholder agreement was in violation of the Companies Act, the agreement which gives certain special rights to a company controlled by Bhatia could get annulled, a person privy to discussions in the government said on condition of anonymity. Gangwal had in the recent past met senior officials in the government.
11/07/19 Quint

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