InterGlobe Aviation Ltd, the parent of the airline IndiGo, has paid Rs 2.10 crore to the Securities and Exchange Board of India (Sebi) to settle IndiGo co-founder Rakesh Gangwal's complaints.
In July 2019, Gangwal wrote to Sebi requesting his help to fix some problems. As per the 10-page order, Sebi had received a number of Gangwal allegations. G Ramar was named Adjudicator for this matter on 5 May 2020.
Here are some of the complaints received by SEBI:
- Compliance with corporate governance
- Related party transactions
- Timely intimation of important information to the board of directors
- Misrepresentation in its Red Herring Prospectus
- Failure in making a timely disclosure of material information
"The findings of EY report was communicated to board members by the chairman in the board meeting dated March 4, 2019," the Sebi order said.
The firm settled the matter "without admitting or denying any violation on its part," by paying the settlement fee for Rs 2.1 crore, in compliance with the Sebi order.
On the basis of the allegations, Sebi investigated the concerns and, on the basis of its inquiry, released a notice of reason with respect to InterGlobe Aviation on 10 November 2020.
"Pending Adjudication Proceedings, the Noticee proposed to settle the instant proceedings initiated against it, without admitting or denying the findings off act and conclusions of law, through a settlement order and filed a settlement application with SEBI bearing on December 23, 2020," according to the SEBI order.
Gangwal, along with its associates, holds approximately 37% stake in InterGlobe Aviation, while Bhatia and its associates (IGE Group) hold approximately 38% stake in InterGlobe Aviation.
Shares of the Interglobe Aviation were seen trading at Rs 1,652.05, down by 0.60% or Rs 10 at 9.30 am on NSE.