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"Pan Ki Dukaan Has Done Well": In IndiGo Promoter Feud, A Sharp Rebuttal

In a letter to market regulator Sebi, Mr Gangwal alleged serious violation of corporate governance rules at InterGlobe Aviation.

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'Pan Ki Dukaan Has Done Well': In IndiGo Promoter Feud, A Sharp Rebuttal

InterGlobe Enterprises (IGE), one of the promoters of parent of India's largest airline IndiGo, on Friday termed charges made by InterGlobe Aviation's co-founder Rakesh Gangwal as baseless and fact free insidious allegations on corporate governance at InterGlobe Aviation. "Mr. Gangwal talks about unusual rights of IGE as a shareholder and promoter, but he fails to give even one instance where there has been any misuse of any such right," InterGlobe Enterprises said while responding to allegations levelled by Mr Gangwal on Tuesday.

"Corporate Governance is not about levelling baseless charges as it is about ensuring that Company's and stakeholders interests are protected and not harmed," InterGlobe Enterprises statement said.

"Paan ki dukaan has apparently done well and continues to do well; it is financially sound; it is well run and managed by a competent set of managers. Mr. Gangwal's allegations about lack of corporate governance are much ado about nothing," InterGlobe Enterprises added.

On accusation of questionable related party transactions (RPT) entered by the Rahul Bhatia's Interglobe Enterprises, the company said, "While he emits volumes of hot air about RPTs, he ends up giving one example of what he believes demonstrates that there may have been something which did not meet arm's length criteria - and that example is factually wrong."

On allegations of the company not holding the extraordinary general meeting non Mr Gangwal's requisition, InterGlobe Enterprises said, "Legal opinion had been sought by IndiGo and basis that opinion Board declined to convene the EGM. This was not any abuse of the rights that IGE Group may have."

In a letter to market regulator Sebi, Mr Gangwal alleged serious violation of corporate governance rules, saying the company has "started veering off" from its core principles and values.

Even a "paan ki dukaan" (betel shop) would have managed matters "with more grace", Mr Gangwal wrote in a letter while referring to various events which was copied to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman besides other ministers and bureaucrats.



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