IndiGo-parent InterGlobe Aviations' shares fall over 2% after co-promoter Rahul Bhatia moves for arbitration proceedings

New Delhi: Shares of IndiGo on Thursday slumped over 2 percent after one of the main promoters Rahul Bhatia moved for arbitration proceedings amid differences with co-promoter Rakesh Gangwal. The airline stock declined 2.22 percent at Rs 1829.35, on the BSE. On the NSE, the scrip plummeted 2.13 percent at Rs 1,830. On Tuesday, InterGlobe Aviation -- parent of the country's largest airline IndiGo -- informed stock exchanges that Bhatia and his group InterGlobe Enterprises have submitted a request for arbitration on 1 October to the London Court of International Arbitration. [caption id="attachment_5335881" align="alignleft" width="380"]

Representational image. Reuters

[/caption]The request has been submitted under the shareholders' agreement, dated 23 April, 2015. The pact was amended on 17 September, 2015, the filing had said. 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 Ltd. "This dispute relates to claims of the IGE Group against the RG Group regarding, inter-alia, compliance with the shareholders agreement and the articles of the association of the company and damages. "Under the request for arbitration, no relief has been sought against the company," it had said. The company has been named as a respondent as it is a party to the shareholders agreement. "However, presently, no monetary claim, including any compensation or penalty, has been sought against the company," it had said. Bringing the differences between long-time friends and promoters of IndiGo into open, Gangwal, in July, had sought SEBI's intervention in alleged corporate governance lapses in the company. The allegations were rejected by Bhatia group.