Promoters' feud has 'zero impact' on IndiGo, says CEO Ronojoy Dutta

'If two of the promoters are having a side discussion on some agreement signed 12 years ago, it doesn't affect us at all,' said IndiGo CEO Ronojoy Dutta.

Published: 14th November 2019 06:26 PM  |   Last Updated: 14th November 2019 06:26 PM   |  A+A-

IndiGo CEO Ronojoy Dutta (left) with Qatar Airways' CEO Akbar Al Bake during a business announcement of one-way codeshare agreement between the two airlines in New Delhi Thursday.

IndiGo CEO Ronojoy Dutta (left). (Photo | PTI)

By PTI

NEW DELHI: Amid ongoing feud between the airline's promoters, IndiGo CEO Ronojoy Dutta on Thursday said there is "zero impact" on the carrier right now as they are on the same page over the airline's strategic direction.

The differences between co-founders and co-promoters -- Rakesh Gangwal and Rahul Bhatia -- came to the fore in July after Gangwal sought market regulator Sebi's intervention to address alleged corporate governance lapses at the company.

They are the promoters of InterGlobe Aviation which operates IndiGo, the country's largest airline in terms of domestic market share.

About the feud, Dutta said as far as the airline is concerned, it was only directly involved in the Related Party Transactions (RPTs).

"That has been resolved completely. Now that RPTs have been removed from the table, we have no more interest in this matter," he said.

In the wake of the allegations, the company has also came under the lens of Sebi and the corporate affairs ministry.

"Right now, it (promoters' feud) has zero impact. When the RPT issue was there, we were involved. Now, they are doing what they do, and that doesn't affect us at all," he said in response to a query about the warring promoters.

According to Dutta, there are some issues between the promoters but that is not affecting the airline.

"If two of the promoters are having a side discussion on some agreement signed 12 years ago, it doesn't affect us at all."

"It is not an overhang on the company because they agree on the direction of the company there is such unity of view on the strategic direction of the company, really there is no controversy," he emphasised.

On whether there are concerns about corporate governance ways at the company, Dutta replied in the negative.

"Not a concern because the only governance issue was that of RPTs. Otherwise, we are functioning smoothly as a well-orchestrated board. Very professionally run," he said.

On October 1, InterGlobe Enterprises and Bhatia sought arbitration proceedings in the shareholders' agreement, dated April 23, 2015.

The pact was amended on September 17, 2015. The agreement was executed between Bhatia's InterGlobe Enterprises Group (IGE Group), Gangwal, the Chinkerpoo Family Trust, Shobha Gangwal -- the RG Group -- and InterGlobe Aviation.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp