Securities & Exchange Board Of India Seeks Clarification From Indigo About Co-Founder Rakesh Gangwal's Letter

IndiGo airline’s co-founder Rakesh Gangwal has complained to the Securities and Exchange Board of India (SEBI) against certain statements made by the chairman and CEO of the airline company Rahul Bhatia.

IndiGo recently informed the Bombay Stock Exchange (BSE) that the Securities & Exchange Board of India (SEBI) has sought comments from the company on a letter written by the counsel of Gangwal.

As per the IndiGo letter, certain issues that Gangwal had previously raised with the SEBI. This is related to the amendment to the Articles of Association of the company to remove the rights of the IGE Group, past related party transactions, non-independence of the current Chairman, refusal to hold the extraordinary general meeting when requisitioned by Gangwal and certain public statements made by the CEO of the company, the letter stated.

The letter mentioned that at the recent AGM of the company held on August 27, 2019, both the promoter groups (including the AG Group) voted in favor of all resolutions, including the resolutions to amend the Articles of Association to expand the size of the board to 10 members and to appoint the Chairman as an independent director of the company.

According to the letter, the company has in place a revised RPT Policy as approved by the company's audit committee and its board of directors.

Incidentally, a clarification from SEBI was sought a day after the airline’s CEO Ronojoy Dutta had written to employees informing that issues between the two promoters have been sorted out.