Thursday, July 11, 2019

InterGlobe Aviation counters Rakesh Gangwal’s claim

New Delhi: This was one of the main accusations that Rakesh Gangwal, co-founder, IndiGo Airlines, had made in his submission to SEBI late on Tuesday.
“Post the IPO, many of the RPTs have ceased to exist while others have been renewed on an arm’s length basis as part of the normal course of business,” the airline said in a media statement.
The statement adds that InterGlobe Enterprises and its Group Entities (IGE) Group has ensured that no entity of the group takes advantage under the RPTs. “Without exception, IGAL has received more favourable treatment from the IGE Group entities as compared to their other customers,” the statement said. It added that the materiality of the transactions for IGAL is not significant, as it was only 0.53 per cent of its consolidated turnover for fiscal 2018-19.
IGE and its founders (Rahul Bhatia and family) are one of the two promoters of IGAL, which owns and operates IndiGo.
Ronojoy Dutta, CEO, IndiGo Airlines, has told employees that the mission, direction and growth strategy of IndiGo Airlines remain “unchanged and firmly in place.”
His message came less than 24 hours after the war of words between Rakesh Gangwal and Rahul Bhatia about corporate governance norms not being properly followed in the airline came out in the open.
11/07/19 Business Line

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