The Dispute between promoters of Indigo Airlines reaches SEBI
The Dispute between promoters of Indigo Airlines reaches SEBI
New Delhi/Mumbai, July 10(HS) The dispute between promoters of Indigo Airlines has escalated as one of them approached SEBI with complaint regarding the issue of corporate governance. Indigo co-founder has alleged defiance of governance protocols and laws in relation to transactions with related party, appointment of senior management personnel, directors and the chairman in the written letter to SEBI. He has also alleged that the co-founder Bhatia is in process of forming another company.
In this issue, Gangwal says that according to the agreement between him and Bhatia, Bhatia has got the right to have control over regulation of Indigo. Due to this, there is no variation in independent directors. As a result, there is bad corporate governance. This has led to the feud between promoters.
It is noteworthy that due to present fight between promoters of company, there has been slump of 19 % in market price of the shares of company. This rift may also have an impact on expansion of airlines to overseas destinations.
