IndiGo promoter spat: Govt seeks explanation from InterGlobe Aviation on Rakesh Gangwal's complaint

The government has sought explanations from InterGlobe Aviation on allegations of corporate governance lapses raised by co-founder and promoter Rakesh Gangwal

|Jul 18, 2019, 19:57:42 IST

New Delhi: The government has sought explanations from InterGlobe Aviation on allegations of corporate governance lapses raised by co-founder and promoter Rakesh Gangwal. In a filing to the stock exchanges, the company on Thursday said it received a communication on Wednesday from the Ministry of Corporate Affairs (MCA) regarding the complaint. The Registrar of Companies (RoC), National Capital Territory of Delhi & Haryana has sought "certain information/explanations" in relation to Gangwal's complaint. [caption id="attachment_6559401" align="alignleft" width="380"]

Representational image. Reuters.[/caption]"The company will respond to MCA within the prescribed period," the filing said. Explanations have been sought under Section 206(4) of the Companies Act, 2013. Section 26 provides powers for the ministry to call for information, inspect books and conduct inquiries. The ministry's communication comes less than 10 days after Gangwal flagged concerns about corporate governance lapses at InterGlobe Aviation, especially certain related party transactions entered into by co-founder Rahul Bhatia's InterGlobe Enterprises (IGE) Group. Copies of his complaint to the markets regulator was also sent to the ministry and Corporate Affairs Minister Nirmala Sitharaman, among others, by Gangwal.

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