New Delhi: InterGlobe Enterprises (IGE), the holding company of Indi-Go promoter Rahul Bhatia, has denied the existence of any whistleblower complaints related to corporate governance at the airline.
A person close to IGE and Bhatia said co-promoter Rakesh Gangwal’s statement about the existence of the complaints was merely a “smokescreen” to cover his “larger game plan” for the control of the airline, which currently vests with the IGE group.
“You are missing the forest for the trees. The real issue is about the controlling rights of the company,” said the person, when asked to clarify on the allegations over corporate governance raised by Gangwal.
Gangwal had flagged transactions between IndiGo and IGE for the airline’s leased headquarter office space in Gurugram, a simulator facility for pilots and also the use of Accor hotels in India for pilots and crew.
The person close to Bhatia and IGE countered these allegations, saying that they had proposed an audit of all these transactions by one of the Big Four audit firms. However, Gangwal denied it on the grounds that they did not have the wherewithal to conduct such an audit, he said.
“The audit was conducted by EY only after chairman M Damodaran wanted it to be done. The audit did not find any problems with the RPTs (related-party transactions) but flagged some minor procedural issues,” said the person.
The Gangwal camp has also alleged that the rent of the building that houses IndiGo’s headquarters, which is leased out by IGE, had come down by about 25% after the airline company called bids to assess market rates.
25/07/19 Economic Times
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A person close to IGE and Bhatia said co-promoter Rakesh Gangwal’s statement about the existence of the complaints was merely a “smokescreen” to cover his “larger game plan” for the control of the airline, which currently vests with the IGE group.
“You are missing the forest for the trees. The real issue is about the controlling rights of the company,” said the person, when asked to clarify on the allegations over corporate governance raised by Gangwal.
Gangwal had flagged transactions between IndiGo and IGE for the airline’s leased headquarter office space in Gurugram, a simulator facility for pilots and also the use of Accor hotels in India for pilots and crew.
The person close to Bhatia and IGE countered these allegations, saying that they had proposed an audit of all these transactions by one of the Big Four audit firms. However, Gangwal denied it on the grounds that they did not have the wherewithal to conduct such an audit, he said.
“The audit was conducted by EY only after chairman M Damodaran wanted it to be done. The audit did not find any problems with the RPTs (related-party transactions) but flagged some minor procedural issues,” said the person.
The Gangwal camp has also alleged that the rent of the building that houses IndiGo’s headquarters, which is leased out by IGE, had come down by about 25% after the airline company called bids to assess market rates.
25/07/19 Economic Times
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