As IndiGo faces 'turbulence', regulators intensify scrutiny of governance lapses

With promoter spat intensifying at the country’s largest airline IndiGo, markets watchdog Sebi and the corporate affairs ministry have started digging deep into allegations of governance lapses and violations that could force the government to override existing arrangements and pacts at InterGlobe Aviation, officials said.

Bringing into public the differences between long-time friends and promoters of IndiGo into the open, Rakesh Gangwal has sought Sebi’s intervention into alleged corporate governance lapses at the company and even said that ‘paan ki dukaan’ (betel shop) would have managed things with more grace. InterGlobe Aviation, which got listed in 2015, has come under intense regulatory scanner and there are indications of multiple violations of Sebi norms. The role of each and every entity associated with all board members and entities linked to the promoters are being probed amid signs of lapses in complying with governance requirements, fair market trade and insider trading norms, the officials said.