IndiGo promoters' feud: Rakesh Gangwal says there are 'serious unresolved issues'

Locked in a bitter battle with co-promoter Rahul Bhatia, InterGlobe Aviation co-promoter Rakesh Gangwal has said there are "serious unresolved issues" and termed reports of reaching a truce as false and misleading.

In July, Gangwal flagged concerns over alleged corporate governance lapses at InterGlobe Aviation -- parent of the country's largest airline IndiGo -- and also wrote to markets regulator Sebi seeking its intervention to address the issues.

Bhatia's InterGlobe Enterprises (IGE) has rejected the allegations.

Against this backdrop, Gangwal in a letter to the company's board said that based on "serious unresolved issues", he was not in a position to vote affirmatively on the special resolution for 'Alteration in Articles of Association of the Company' unless certain issues are addressed.

The proposal is part of the notice for AGM, scheduled to be held on August 27.

According to Gangwal, there should be a complementary board resolution to prevent IGE Group from getting even more rights and abilities than they have today. A new Related Party Transaction (RPT) policy has to be adopted, language for which has already been agreed, he said in the letter dated August 5.

"The AGM notice, along with 'unnamed sources' having planted press reports that the chairman has brokered peace and matters have been resolved, leaves a misleading and false impression that issues on RPTs and changes to the Articles have the support of both promoter groups.

"This is in stark contradiction to the numerous emails exchanged since July 20, and my July 27th email to board members stating that I am "... unable to support the resolution in the absence of the complementary Board resolution on the Articles and the RPT policy", Gangwal has said.

The letter has been disclosed to the stock exchanges by InterGlobe Aviation on Tuesday.

Gangwal also said that in his view, the chairman should have directed the company to flag this material fact in the AGM notice in the interest of transparency and for the benefit of the minority shareholders.

InterGlobe Aviation is chaired by former Sebi chief M Damodaran.