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Last Updated : Jul 19, 2019 12:12 PM IST | Source: Moneycontrol.com

EY report finds IndiGo dealings compliant with corporate norms

The report notes that all related-party transactions were ‘placed before the audit committee for review and approved’

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An independent review of embattled IndiGo’s (InterGlobe Aviation) transactions has found the airlines’ dealing to be compliant with all necessary norms and practices, Business Standard reported.

The report notes that all related-party transactions were ‘placed before the audit committee for review and approved’ and that none of the transactions was in ‘conflict with the interest of the company’.

The review concluded that ‘all such transactions since its public listing were done at arm’s length, approved by the audit committee’, but also noted that permission from the audit committee in some instances was granted after the transactions were already executed, the paper added.

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Arm’s length in this instance means that the deals were executed post appropriate tendering process.

The review was conducted by consultancy firm Ernst & Young (EY) on Chairman M Damodaran orders for a forensic expert-led independent review after co-promoter Rakesh Gangwal alleged violations of corporate governance norms.

Gangwal’s complaints, especially a letter written to the market regulator about alleged anomalies in IndiGo’s rental deal with InterGlobe Real Estate Ventures in Gurugram, had prompted SEBI to seek an audit report from IndiGo’s board. The independent review, however, has found this transaction to also be fair and at arm’s length.

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First Published on Jul 19, 2019 10:56 am
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