NEW DELHI: Shares of Interglobe Aviation tanked 5 per cent in Tuesday’s trade after a report said that Sebi has found undisclosed related-party transactions in its preliminary enquiry.

At 1.36 pm, the stock was trading 5.08 per cent lower at Rs 1,370.90. The scrip saw a spurt in volume by more than 6.65 times.

A media report said that the Securities and Exchange Board of India (Sebi) has found several related-party transactions (RPTs) between InterGlobe Enterprises and IndiGo, which is operated by Interglobe Aviation that were not disclosed as per required procedure.

The publication further reported that the regulator has prepared a report and forwarded the same to a committee of internal divisional chiefs for future course of action.

The promoters of the company — Rakesh Gangwal and Rahul Bhatia — have been fighting over the issue for months. Gangwal had alleged that IndiGo entered into RPTs with companies associated with Bhatia, a charge that the latter insists is mala fide. Bhatia contends that all such deals were intimated to the company’s board, and were undertaken with the utmost transparency.

An RPT is an arrangement between two entities which share a pre-existing business relationship.


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