IndiGo board has approved new policy on related-party transactions: Gangwal

InterGlobe Aviation promoter Rakesh Gangwal on Friday said the company's board has approved a new policy on related-party transactions, amid an ongoing feud with co-promoter Rahul Bhatia over governance issues.

The company is the parent of the country's largest airline IndiGo.

"While much work lies ahead, including mending some fences and the regulators completing their investigations on the governance issues raised with them, it is gratifying to see progress towards better governance," Gangwal said in a statement.

Gangwal said the board has now approved a new related-party transaction policy and to also close an open issue if the Articles of Association are amended at the company's upcoming annual general meeting (AGM) to increase the board size to 10 directors.

"In light of this positive and important development, I will be supporting the proposed changes to the Articles," he said.

The AGM is scheduled to be held on August 27.

Currently, InterGlobe Aviation has six board members.

The feud between Gangwal and Bhatia came into the public after the former, in July, wrote to markets regulator Sebi seeking its intervention to address alleged corporate governance lapses at the company. The allegations have been rejected by the Bhatia group.

Gangwal and his affiliates hold around 37 per cent stake in InterGlobe Aviation, while Bhatia's group owns nearly 38 per cent shareholding.