IndiGo promoters should have managed disagreements better, say analysts

A proposal by one of the promoters to implement a code of conduct for related party transactions may independently be seen as a step in the right direction towards strengthening corporate governance s

Proxy firms and legal eagles are of the view that Indigo promoters Rahul Bhatia and Rakesh Gangwal could have managed the disagreements better with the help of the board. 

They point out that the aviation industry, which has already seen Air India struggling and Jet Airways ending up in insolvency tribunal, could have done without this problem.

IndiGo promoter Gangwal has sought market regulator Securities and Exchange Board of India’s (Sebi’s) intervention, alleging issues in related party transactions, and violations of governance regulations. He said that the powers vested with Bhatia shows that big listed firms are not adhering to corporate governance