New Delhi: A day after InterGlobe Aviation co-founder Rakesh Gangwal flagged concerns over governance matters, Rahul Bhatia's group said that all related party transactions with the company have been executed at arms length basis in ordinary course of business. Bhatia is also a co-founder of InterGlobe Aviation Ltd (IGAL), the parent of the country's largest airline. In a detailed statement, Bhatia's InterGlobe Enterprises (IGE) said it has nurtured and supported IGAL through its formative and expansion years by making available certain services through related party transactions.
Currently, there are related party transactions in four areas -- real estate leased to IGAL, simulator training facilities, General Sales Agreements (GSAs) for limited foreign markets and crew accommodation at Accor Hotels, the statement said. Citing unaudited numbers for 2018-19, the statement said the related party transactions in the four areas accounted for Rs 150.12 crore or 0.53% of IGAL's consolidated turnover. "All related party transactions have been executed on an arms' length basis and in the ordinary course of business. The IGE Group has nurtured and supported IGAL through its formative and expansion years by making available these services," it noted.Gangwal and his affiliates have around 37% stake in IGAL while Bhatia and his affiliates (IGE Group) have about 38%.
