The government has sought a response from IndiGo on allegations of corporate misgovernance levelled by its co-promoter Rakesh Gangwal, the airline informed the stock exchanges on Friday.
“The company has received a communication from the Ministry of Corporate Affairs (MCA), Office of Registrar of Companies... requiring the company to furnish certain information/explanations pursuant to Section 206 (4) of the Companies Act, 2013, in relation to complaint dated July 8, 2019 received from Mr. Gangwal, co-founder and director of the company. The company will respond to MCA within the prescribed period,” IndiGo said.
Battle of sorts
The airline is witnessing a battle of sorts with Mr. Gangwal seeking the Securities and Exchange Board of India’s intervention in the matter relating to ‘unusual rights’ available with another promoter, Rahul Bhatia, allegedly leading to governance problems.
He had also raised an issue with the businesses conducted between IndiGo and Mr. Bhatia’s InterGlobe Enterprises.
Mr. Bhatia, though, had called these charges “hot air” and an attempt to dilute his controlling rights.
Amid this tussle, the IndiGo board is headed for a stormy meet on Friday to finalise June quarter results.
