InterGlobe Aviation will hold its Extraordinary General Meeting on January 29 in which the issue of changes in the Articles of Association (AoA) of the company will be taken up.
In a communication to the BSE on Friday, IndiGo said the EGM is being held following a request made by the RG Group comprising Rakesh Gangwal, Shobha Gangwal and the Chinkerpoo Family Trust (Trustee: Shobha Gangwal and J.P. Morgan Trust Company of Delaware) and related entities, who collectively hold 36.64 per cent of the paid-up share capital of the company.
The EGM comes amidst a bitter war of words between Rahul Bhatia and Rakesh Gangwal, the co-promoters of IndiGo, last year. In June, Gangwal wrote to the Securities and Exchange Board of India (SEBI) alleging that the controlling rights of Inter Globe Enterprise Group, a minority shareholder, have not been “judiciously and prudently used in the best interests of the company”.
In his communication, Gangwal said he had not expected that over the years, Bhatia “would start building an ecosystem of other companies that would enter into dozens of related-party transactions (RPTs) with IndiGo”. “We are not against RPTs as long as proper checks and balances exist and such RPTs are in the best interest of the company,” he added.
Countering the allegation, Bhatia said the IndiGo Board Chairman had pointed out in March that an EY report on the RPTs of the past five years noted that there were no “substantive irregularities” but only “procedural irregularities”.
Days before the Annual General Meeting of IndiGo was to be held last year Gangwal issued a statement that he will support the proposed changes to the Articles of Association. Many of the issues raised by Gangwal, including increasing the size of the Board and induction of women directors, were accepted.
But in a twist to the tale, Bhatia submitted a Request for Arbitration against Gangwal in October last year.
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