Updated: February 10, 2021 5:32:59 pm
Interglobe Aviation Ltd, the company that runs India’s largest airline IndiGo, has settled a case of alleged violations of listing norms and lapses of corporate governance with the Securities and Exchange Board of India (SEBI) by paying Rs 2.10 crore under the consent mechanism of the regulator. The company, SEBI said, has settled the matter without admitting or denying any violation on its part.
Under SEBI’s consent mechanism, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.
Indigo came under the scanner of SEBI after the regulator received a complaint from Rakesh Gangwal, co-promoter of firm in July 2019, alleging corporate governance lapses against his partner Rahul Bhatia and Interglobe Enterprises (IGE), stating that Bhatia had carried out related party transactions (RPT) without the approval of the audit committee. Gangwal also alleged governance lapses in appointment of independent directors, powers of the Nomination and Remuneration Committee of the company’s board and the alleged misrepresentation in the firm’s Red Herring Prospectus (RHP) of October 2015.
SEBI in its settlement order has said that in December 2020, Interglobe Aviation proposed to settle the proceedings initiated against it, without admitting or denying the findings of fact and filed a settlement application with the regulator. The case was subsequently referred to SEBI’s High Powered Advisory Committee (HPAC), which recommended the settlement proposal and it was approved by the panel of Whole Time Members of SEBI on January 25.
Gangwal and his affiliates hold around 37 per cent stake in InterGlobe Aviation while Bhatia and his associates (IGE Group) hold about 38 per cent shares of the company.
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