Responded to all SEBI queries on related party transactions: IndiGo
Moneycontrol had first reported on February 25 that in a preliminary enquiry, SEBI found several related-party transactions (RPTs) between InterGlobe Enterprises and IndiGo that were not disclosed as per required procedure.
February 26, 2020 / 08:24 PM IST
IndiGo has responded to all queries by the Securities and Exchange Board of India (SEBI) on related-party transactions (RPTs), CEO Ronojoy Datta said in a statement. Datta also dismissed allegations of any wrongdoing or avoidance of processes.
The clarification came after Moneycontrol first reported on February 25 that in its preliminary enquiry (PE), SEBI had found several RPTs between InterGlobe Enterprises and IndiGo that were not disclosed as per the required procedure.
"The airline has responded to all queries from the SEBI regarding these matters and remains confident that its position will be accepted," Datta said.
"IndiGo strongly denies any allegations of wrongdoing or avoidance of processes. It reiterates that it has strong processes for ensuring arm’s length dealings with related parties and that such transactions were entered into in the ordinary course of business and were in the best interests of IndiGo," added Datta.
The issue of related party transactions had become a bone of contention between IndiGo co-founders, Rakesh Gangwal and Rahul Bhatia. Gangwal had alleged that the companies affiliated to InterGlobe Enterprises (IGE), which is privately held by Bhatia, had benefitted from transactions with IndiGo, the country’s largest airline. IGE owns 37.87 percent in listed InterGlobe Aviation, operator of IndiGo.