InterGlobe Aviation promoter Rakesh Gangwal rubbished reports of truce with Rahul Bhatia indicating that the feud between the two was far from over. Gangwal and Bhatia -- promoters of the country's largest airline IndiGoNSE -2.01 % -- are locked in a bitter battle over alleged corporate governance lapses.
In a strongly worded letter, Gangwal refused to vote affirmatively on a special resolution for "Alteration in Articles of Association". InterGlobe's board has decided to expand the strength of the board to up to ten members, including four independent directors. Also, there would be one woman independent director.
"The chairman should have directed the Company to flag this material fact in AGM notice in the interest of transparency and for the benefit of minority shareholders" said Gangwal.
Shares of InterGlobe Aviation extended their decline for the fourth session on Tuesday. The stock fell more than 5 percent intraday to Rs 1,411.61. That compares with a 0.40 percent gain in the Sensex. IndiGo shares have fallen 8.5 percent in the past three months compared with a 5.3 percent decline in the Sensex.