IndiGo promoters call it a truce but no recalling plaints

IndiGo’s feuding promoters may have decided to bury the hatchet and agree on common goals for the airline, but the complaints filed with the market regulator and the government remain and will be processed. “The law of the land does not allow the complainant to file a complaint one day and take it back on another day. Issues may have been resolved, but investigations on complaints will continue as they were of corporate governance violations during an earlier period,” said a person familiar with the developments who did not want to be identified.The battle between Rakesh Gangwal and Rahul Bhatia, promoters of India’s largest airline by market share, showed signs of a thaw after Gangwal agreed to a new policy on related party transactions. At the annual general meeting on Tuesday, Bhatia said he had always credited Gangwal for his work. “I will be the first person to say... I have always acknowledged Rakesh’s contribution to the organisation at every public forum,” Bhatia said in reply to a question.People aware of the matter said Gangwal doesn’t have any complaints about corporate governance issues now. “Gangwal’s complaints have been resolved and he is pleased with the outcome,” said a person on condition of anonymity.After the complaint, the promoters negotiated a proposal to increase the size of the board to 10 from six and frame a new policy on related-party transactions, including vetting them at various levels.Gangwal, his family and his family trust together own about 37% of the airline’s equity but they do not control in the airline. Gangwal agreed last week to support the changes and the proposal was cleared at the AGM on Tuesday.

from Economic Times https://ift.tt/346LeO5