Logistics

IndiGo row: Litigation said to have begun in US

Our Bureau New Delhi | Updated on October 17, 2019 Published on October 17, 2019

File photo   -  Reuters

InterGloble Enterprises (IGE) is said to have started litigation in the American states of Florida and Maryland against Rakesh Gangwal, one of the two co-promoters of IndiGo.

The news about InterGlobe starting arbitration proceedings was put out by LAW 360, a LexisNevis company with its office in New York. The report states IGE has filed litigation in Florida and Maryland as it seeks information for an arbitration proceeding in New Delhi that relates to the power struggle for control over IndiGo.

Interestingly, the arbitration proceedings are going on at the London Court of International Arbitration (LCIA). The proceedings were started by Rahul Bhatia, who is the co-promoter of IndiGo along with Gangwal, on October 1. The LAW 360 report goes on to say that Bhatia told a federal court in Florida on Wednesday that they are seeking information related to a shareholders’ agreement between IndiGo, IGE, the Bhatia family, Rakesh Gangwal and his wife Shobha.

Neither Bhatia, nor Gangwal nor M Damodaran (former SEBI chief and Chairman of InterGlobe Aviation) responded to text messages seeking their response. IGE, which is registered in India, has not yet informed the BSE about the latest litigation proceedings in the US.

On Thursday, IGE merely informed the BSE that it will hold its board meeting on October 24 for its H1 results.

Published on October 17, 2019
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