IndiGo’s promoter submits arbitration request in London Court against other partner

IndiGo’s promoter Rahul Bhatia and the IGE Group have submitted a request for arbitration in the London Court of International Arbitration against partner Rakesh Gangwal on issues of compliance with the shareholders’ agreement and articles of association (AOA) of the company. The AOA, in which the agreement has been embedded, has been the cause of public dispute between the two founders of the airline and the company has been named as a necessary and proper party to the arbitration. However, presently, no monetary claim, including any compensation or penalty, has been sought against the company. In July 2019, one of the founders had complained to the Securities and Exchange Board of India that the agreement is skewed in favour of Rahul Bhatia in that it gives him the power to choose and appoint the chairman, most board directors and the top management executives, and this has resulted in disputes.