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Boardroom Battles & Corporate Governance Turbulence at IndiGo Polisetty Aruna*, Manda Vijaya Kittu** *Assistant Professor, GITAM Institute of Management, Visakhapattanam **Research Scholar, GITAM Institute of Management, Visakhapattanam Online published on 15 January, 2020. Abstract IndiGo, the airline services arm of InterGlobe Aviation Limited, was co-founded by Rakesh Gangwal (Gangwal) and Rahul Bhatia (Rahul) in 2006. A recent spat between these two co-promoters has raised the question of corporate governance issues in the company. Bitter boardroom battle got triggered when one of the co-promoters Gangwal made critical comments against the company’s practices. This issue got raised because of rights abused by Rahul by his considerable powers opined by Gangwal. However, Gangwal was quite okay at the inception of the company. These comments triggered the attention of capital market regulator SEBI. The topics regarding exclusive rights and Related Party Transactions (RTPs) raised red flags. Shareholders got concerned, and the share price nosedived. Experts opined RTPs to be an administrative issue and not that of the airlines. This case uses secondary data from reliable sources. Discussion is centered from the debut of IndiGo to strategies used in becoming a leading domestic carrier and about the recent bitter battle. We then explored the question: What would be the impact of governance issues with the company in the future? Top Keywords Related Party Transactions, Boardroom, Corporate Governance, Indigo, Aviation Sector, India. Top | |
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