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IndiGo promoters having issues: Sources

IndiGO-agencies
Rakesh Gangwal and Rahul Bhatia, both holding almost the same equity stake of 37-38% each, are learnt to be sparring over "executive control".
The two promoter of India's most successful airline--IndiGo--are believed to be having differences with each other and have engaged law firms to iron out their issues, ET Now learns exclusively from sources.

Rakesh Gangwal and Rahul Bhatia, both holding almost the same equity stake of 37-38% each, are learnt to be sparring over "executive control". US-based Gangwal has reportedly engaged Khaitan & Co to sort out differences with his partner, and Bhatia is believed to have roped in JSA Law for the same.

All three stakeholders i.e., Gangwal, Bhatia and IndiGo responded to detailed queries sent by ET Now.

"The two promoters have hired lawyers to sort out the differences, and that is the ideal situation. That is the intended result, and not for them to litigate or press for one of the promoters to exit," said a source.

Sources add the differences started when Bhatia felt Gangwal was gaining greater control of the airline with a slew of recent top level appointments. "The new CEO Ronjoy Dutta for example is Gangwal's former colleague at United Airlines. Their differences are over the perception of one promoter having more control," said a source.

ET Now has not been able to access the shareholder agreement between the two founders.

Last year, a media reticent Rahul Bhatia publicly clarified that Aditya Ghosh did not end his 10-year long highly successful stint at the airline due to the appointment of expats at high level positions.

Rahul Bhatia and Rakesh Gangwal came together in 2004 to form InterGlobe Aviation, the owner of Indigo, with an investment of Rs 350 cr.

Bhatia is credited to have an excellent sense of commercials and a great insight into India's regulatory environment. Gangwal on the other hand ran US Airways during turbulent times in the 1990s and is seen as the brainchild behind Indigo's highly efficient operation
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