Promoters#39; feud has #39;zero impact#39; on IndiGo, says CEO Ronojoy Dutta
Amid ongoing feud between the airline’s promoters, IndiGo CEO Ronojoy Dutta on Thursday said there is “zero impact” on the carrier right now as they are on the same page over the airline’s strategic direction.
The differences between co-founders and co-promoters — Rakesh Gangwal and Rahul Bhatia — came to the fore in July after Gangwal sought market regulator Sebi’s intervention to address alleged corporate governance lapses at the company.
They are the promoters of InterGlobe Aviation which operates IndiGo, the country’s largest airline in terms of domestic market share.
About the feud, Dutta said as far as the airline is concerned, it was only directly involved in the Related Party Transactions (RPTs).
“That has been resolved completely… Now that RPTs have been removed from the table, we have no more interest in this matter,” he told PTI in an interview here.
In the wake of the allegations, the company has also came under the lens of Sebi and the corporate affairs ministry.
“Right now, it (promoters’ feud) has zero impact. When the RPT issue was there, we were involved. Now, they are doing what they do, and that doesn’t affect us at all,” he said in response to a query about the warring promoters.
According to Dutta, there are some issues between the promoters but that is not affecting the airline.
“If two of the promoters are having a side discussion on some agreement signed 12 years ago, it doesn’t affect us at all.
“It is not a overhang on the company because they agree on the direction of the company… there is such unity of view on the strategic direction of the company, really there is no controversy,” he emphasised.
On whether there are concerns about corporate governance ways at the company, Dutta replied in the negative.
“Not a concern because the only governance issue was that of RPTs. Otherwise, we are functioning smoothly as a well orchestrated board. Very professionally run,” he said.
On October 1, InterGlobe Enterprises and Bhatia sought arbitration proceedings in the shareholders’ agreement, dated April 23, 2015. The pact was amended on September 17, 2015.
The agreement was executed between Bhatia’s InterGlobe Enterprises Group (IGE Group), Gangwal, the Chinkerpoo Family Trust, Shobha Gangwal — the RG Group — and InterGlobe Aviation.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.