The largest airline in the country operates IndiGo InterGlobe Aviation Rs. 2.1 crores paid for settling disputes with SEBI. There have been many differences between the company's promoters Rakesh Gangwal and Rahul Bhatia. Gangwal sought intervention to resolve some issues related to SEBI.
InterGlobe Aviation, the country's largest airline operating Indigo, settled a dispute with the market regulator Securities and Exchange Board of India (SEBI) in case of flaws in company operations and violation of listing provisions. These matters were raised by the company's co-promoter Rakesh Gangwal. According to a SEBI order dated Tuesday, the company has settled the case without admitting fault in the matter by paying a settlement fee of Rs. 2.1 crore.
There have been differences between the company's co-promoters Gangwal and Rahul Bhatia on certain matters of company operations. Gangwal's allegations were dismissed by the Bhatia camp. Gangwal had written a letter to SEBI in July 2019 seeking intervention to resolve some issues related to company operations. SEBI issued a show-cause notice to InterGlobe Aviation on 10 November 2020.
SEBI had asked why action should be taken against the parties for not disclosing the transactions. After this, Rakesh Gangwal, co-founder of InterGlobe, approved the settlement in this case. SEBI said in the order that on February 8, InterGlobe paid the settlement. SEBI said that during the investigation it was found that a lot of cases were not disclosed by the InterGlobe. In the information that was given to SEBI during the IPO, too many disclosures were not made to investors.
A promoter of InterGlobe complained about 4 years after the IPO in this case. The complaint contained management control and other things. It also talked about the transfer of shares. An EGM was also held on 29 January 2020 in which the shareholders rejected the proposal of some reforms. SEBI said that a lot of complaints were received in this way, on completion of the investigation, InterGlobe applied for settlement. InterGlobe had filed a consent application with SEBI for an out-of-court settlement. SEBI had investigated the matter of governance in 2019. It was revealed that Gangwal and Rahul Bhatia did not follow the rules in terms of controlling authority. Also, many decisions were made without any safeguards. Last month there was a negotiation between InterGlobe and SEBI in this case.
Gangwal holds a 37 percent stake in InterGlobe and Rahul Bhatia 38 percent. There has been a lot of controversy between the two in recent times. The dispute between the two increased to such an extent that its complaint reached the Prime Minister's Office. The dispute went on for a long time. In this, it was alleged from both sides that the rules were not being followed.
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