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.
