Amid signs of truce between its warring promoters, InterGlobe Aviation, which runs private airline IndiGo, told shareholders in the annual general meeting (AGM) that all the related party transactions (RPTs) are at an arm’s length.
Airline co-promoter Rakesh Gangwal, who earlier questioned the RPTs and sought action by market regulator Sebi, did not attend the crucial meeting. Independent Director Anupam Khanna, who has supported Gangwal on the contentious issue, was also absent.
Responding to shareholders’ query on the issue, IndiGo CEO Ronojoy Dutta said that value of RPTs that the company has signed with co-promoter Rahul Bhatia’s firms is about Rs 156 crore and accounted for less than 1% of the company’s total revenues of Rs 30,000 crore.
“There is not a single case, where RPT is not at arm’s length,” Dutta said at the AGM. Some of the shareholders expressed concern over erosion of value of shares due to accusations made by Gangwal. They also wanted to know why Gangwal did not attend the meeting.
The feud between the two airline co-founders, Gangwal and Bhatia, came out in the open in June this year after the former wrote a letter to market regulator Sebi raising issues related to RPTs and corporate governance.