In the backdrop of InterGlobe Aviation Ltd’s co-promoter Rakesh Gangwal’s counsel writing a fresh letter to the Securities and Exchange Board of India (Sebi), the markets regulator has sought a response from the company regarding corporate governance issues. Gangwal’s letter was sent to Sebi on August 30, days after the firm’s annual general meeting on August 27, where the resolutions were voted in favour of by both the sparring promoters.
Gangwal and co-promoter Rahul Bhatia have differences over certain corporate governance matters at InterGlobe Aviation, the parent of the country’s largest airline IndiGo. In a filing to the stock exchanges on Wednesday, InterGlobe Aviation said Sebi has sought comments on a letter written by Gangwal on August 30. “The company will provide its response to the Sebi,” the filing said.
On September 3, Sebi sought comments from the company on a letter received by the regulator from legal counsel of Gangwal. According to the filing, the letter reiterates certain issues that Gangwal had previously raised with Sebi and seeks certain directions from the regulator against the company and the IGE Group.
The issues are related to amendment to the company’s Articles of Association (AoA) 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, it said. The company also said at the annual general meeting held on August 27, both promoter groups have voted in favour of all the resolutions, including those to amend the AoA to expand the size of the board to 10 members and to appoint the Chairman as an independent director.
“Further, as on date, the company has in place a revised Related Party Transaction (RPT) Policy as approved by the company’s Audit Committee and the Board of Directors,” the filing said.
Sebi is already looking into alleged corporate governance lapses at InterGlobe Aviation after Gangwal, in July, wrote to the watchdog seeking its intervention to address certain issues.