The report notes that all related-party transactions were ‘placed before the audit committee for review and approved’
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.
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.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .