InterGlobe Aviation settles corporate governance case with Sebi
InterGlobe Aviation, the parent of budget carrier IndiGo, has settled a case with the Securities and Exchange Board of India (Sebi), which alleged that the company violated corporate governance norms.
InterGlobe Aviation paid Rs 2.10 crore without admission or denial of guilt. This came after the company filed a consent application with the market regulator.
Rakesh Gangwal, co-founder and director of Interglobe Aviation, had written to Sebi alleging violation of corporate governance norms and related party transactions between the company and IGE Group — comprising co-founder Rahul Bhatia and his affiliates — which holds 38 per cent in IndiGo.
Gangwal had also alleged misrepresentation by the company in its red herring prospectus of October 16, 2015.
Based on its investigation, Sebi issued a showcasue notice on November 10, 2020.
Pending adjudicating proceedings, the company proposed to settle the matter without admitting or denying the findings of fact and conclusions of law through a settlement order and filed a settlement application with Sebi on December 23, 2020.
The settlement terms were placed before a panel on January 25, which considered the facts of the case, the settlement terms offered by the applicant and other material made available by Sebi.