IndiGo co-founders spat: Rahul Bhatia moves US courts in arbitration against Rakesh Gangwal

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The IndiGo co-founder s also seeking damages and information related to the arbitration proceedings he initiated in London as Gangwal is based in Florida and another IndiGo Director Anupam Khanna lives in Maryland

After London, the feud between IndiGo (InterGlobe Aviation) co-founders Rahul Bhatia and Rakesh Gangwal has reached the US shores.

Co-founder Rahul Bhatia, reports an online news agency, has sought the intervention of courts in Florida and Maryland against Gangwal. He is also seeking damages and information related to the arbitration proceedings he initiated in London as Gangwal is based in Florida and another IndiGo Director Anupam Khanna lives in Maryland.

Along with Gangwal, Khanna was also vocal about the alleged corporate governance issues in the country’s largest airline.

The latest move comes about a fortnight after Bhatia moved the London Court of International Arbitration against Gangwal and the latter’s RG Group.

Bhatia in his filing has alleged that Gangwal breached the shareholders agreement and Articles of Association, the report said.

The arbitration follows months of stiff between the two, and which went public after Gangwal approached market regulator SEBI. He had alleged corporate governance violations at IndiGo. These included related-party transactions between IndiGo and IGE.

Gangwal also alleged that Bhatia’s IGE had overt influence over the appointment of directors and senior management, thereby controlling the airline’s operations.

But after the airline’s Board amended its policy on related-party transactions and also expanded the board, the founders seemed to have made peace with each other. The company’s AGM had also amended the Articles of Association.LIVE NOW… Video series on How to Double Your Monthly Income… where Rahul Shah, Ex-Swiss Investment Banker and one of India’s leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.