Indigo: Rejected Proposal To Amend Articles May Not Upset Status Quo

The defeat of the special resolution moved by Rakesh Gangwal, one of the two co-promoters of IndiGo Airlines, seeking to amend the Articles of Association of IndiGo late on Wednesday, means that the bitter battle between Gangwal and the second co-promoter Rahul Bhatia is likely to continue.

- Ashwini Phadnis

This also means that the rights of the shareholders will continue as before.

However, a cross-section of corporate lawyers that BusinessLine spoke to were of the opinion that this is unlikely to impact the airline’s operations.

The EGM had been called by Gangwal and others who collectively own 36.64 percent of the paid-up capital of IndiGo after a bitter fight broke out between Gangwal and Bhatia over governance issues.

The EGM had been called to amend the AoA, which place restrictions on the two co-promoters.

Says Tarun Bhatia, Managing Director, Kroll: “From that perspective (the disagreement between the two largest shareholders of the airline continuing), it is not in the interest of anyone...be it the lenders, minority shareholders or employees.”