Business

Indigo director slams chairman

‘Serious new governance issue appears to be emerging’

An independent director of InterGlobe Aviation Ltd. (IGAL), that owns and runs IndiGo Airline, has voiced concerns similar to the issues raised by IndiGo co-founder Rakesh Gangwal.

Anupam Khanna, in a letter dated August 5, to chairman M. Damodaran, which has been made public by Mr. Gangwal, wrote, “I am still hopeful that you would have formulated a constructive approach addressing the concerns I had also expressed and built on the simple solutions I had suggested on July 24.

“Alas, that has not happened and you have addressed ‘remaining issues with a non-solution.

“Moreover, a serious new governance issue appears to be emerging with the approach you have laid out (especially relating to holding various meetings after the AGM).

The letter comes as a shot in arm for IndiGo co-founder Rakesh Gangwal, who had raised fresh issues in a bid to curtail the ‘growing power’ of other co-founder Rahul Bhatia and his InterGlobe Enterprises (IGE) Group in IGAL.

He said the suggested safeguard (by him and Mr. Gangwal) was precisely for situations when the full complement of independent directors ‘was not in place and the IGE Group can ride roughshod over the opposition’.

“This has happened in the past and this risk must be avoided. A tremendous trust deficit has been built up and we, as a board, must wring out.”

He had also asked Mr. Damodaran not to schedule meetings as the AGM had been called on August 27.

Mr. Gangwal said he had to make this letter public as the company had not filed this relevant letter with the stock exchanges.

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Printable version | Jul 8, 2020 8:50:04 PM | https://www.thehindu.com/business/indigo-director-slams-chairman/article28872302.ece

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