140th Day Of Lockdown

Maharashtra53560136843518306 Tamil Nadu3086492506805159 Andhra Pradesh2445491547492203 Karnataka1886111055993398 Delhi1461341316574131 Uttar Pradesh126722767212120 West Bengal98459671202059 Bihar8274154139450 Telangana8075157586637 Gujarat71064542382652 Assam5883842326145 Rajasthan5249738235789 Odisha4592731785321 Haryana4163534781483 Madhya Pradesh3902529020996 Kerala3433121832109 Jammu and Kashmir2489717003472 Punjab2390315319586 Jharkhand185168998177 Chhatisgarh12148880996 Uttarakhand96326134125 Goa871259575 Tripura6161417641 Puducherry5382320187 Manipur3752204411 Himachal Pradesh3371218114 Nagaland30119738 Arunachal Pradesh223115923 Chandigarh1595100425 Meghalaya11154986 Sikkim9105101 Mizoram6203230
Business Companies 15 Jul 2019 As rift deepens, Ind ...

As rift deepens, IndiGo faces scrutiny of pacts

PTI
Published Jul 15, 2019, 1:33 am IST
Updated Jul 15, 2019, 1:33 am IST
Gangwal has sought Sebi's intervention into corporate governance lapses at the company.
The company could face strict regulatory action, including overriding of existing pacts, in case there are violations of the Act.
 The company could face strict regulatory action, including overriding of existing pacts, in case there are violations of the Act.

New Delhi: With the spat between IndiGo co-promoters Rahul Bhatia and Rakesh Gangwal intensifying, markets watchdog Sebi and the Corporate Affairs Ministry have started digging deep into allegations of governance lapses and rule violations that could force the government to override existing arrangements and pacts at InterGlobe Aviation, officials said.

Gangwal has sought Sebi's intervention into corporate governance lapses at the company.

 

InterGlobe Aviation has come under intense regulatory scanner and there are indications of multiple violations of Sebi norms. The role of each entity associated with all board members and entities linked to the promoters are being probed amid signs of lapses in complying with governance requirements, fair market trade and insider trading norms, the officials said.

An official said the ministry would be seeking a "para-wise comments" from the firm on Gangwal's complaint and would also be looking at the related party transactions. The ministry would examine if memorandum, articles, agreements and resolutions are in consonance with the Companies Act provisions.

 

The company could face strict regulatory action, including overriding of existing pacts, in case there are violations of the Act.

The official said the ministry can even invoke powers under Section 6 of the Companies Act, 2013. Section 6 provides powers to override any memorandum, articles, agreements or resolutions passed at general meeting or by the board of directors in case they violate norms.

The officials said Sebi is likely to summon a number of executives and board members of InterGlobe.
Meanwhile, the Bhatia side on Sunday claimed that Gangwal always limited his financial risks and was making insidious efforts to create an unseemly controversy about corporate governance.

 

In a reflection of the rift between the promoter groups, InterGlobe Enter-prises (IGE) Group has issued three statements in less than a week seeking to clarify issues and reject the allegations by Gangwal.

"Even more significantly, during the turbulent period of a fledgling airline, it was left to the IGE Group, as a responsible founder, to fend for IndiGo. Gangwal was missing in action at that time and there were stages where he wanted to de-risk and pushed for the business to be sold," the group said.

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT