India Inc sees related-party transactions drying up on increased scrutiny

A look at the numbers show that the value of such transactions grew slower than net sales and total assets

In the midst of a spat over related-party transactions involving India’s largest airline IndiGo, data shows that the rest of corporate India may actually have restrained from such transactions in recent years.
 
A related-party transaction is one that involves the company and another entity in which key officials may have a stake. Numbers from annual reports — captured by corporate data provider Capitaline for the past financial year that ended in March 2019 for most companies — show a steady decline in the value of related-party transactions over previous years.
 
InterGlobe Aviation, which runs IndiGo, had co-founders Rakesh