SEBI has launched a probe into InterGlobe Aviation, IndiGo’s parent, over potential failure to disclose critical regulatory notices from DGCA during the pilot duty time limits (FDTL) crisis that caused massive flight cancellations, with the regulator also scrutinizing the board’s role and awareness through committee minutes.
Exchanges Tasked with LODR Compliance Check
SEBI is assessing whether IndiGo violated Listing Obligations and Disclosure Requirements (LODR) norms by not revealing DGCA show-cause notices dated August 11 and December 6, 2025—including one on using unapproved flight simulators. Sources confirm exchanges have been directed to review lapses independently as first-line regulators, with board committee minutes under examination to determine if risks were flagged early.
Proxy Firms Slam Board Oversight Failures
Stakeholders Empowerment Services (SES) founder JN Gupta first flagged the issue, questioning why the board—featuring high-profile members like ex-SEBI chief M Damodaran, Niti Aayog’s Amitabh Kant, ex-Shell India chair Vikram Singh Mehta, lawyer Pallavi Shroff, and ex-IAF chief BS Dhanoa—failed to anticipate the crisis despite FDTL norm awareness. SES criticized the delayed Crisis Management Group formation and Risk Management Committee (RMC) inaction. IiAS echoed this, accusing the board of poor risk oversight, stakeholder neglect, and reactive measures that strained regulator, customer, and employee ties.
Chairman Defends Board’s Proactive Engagement
Non-executive chairman Vikram Singh Mehta issued a statement rejecting claims of board disengagement, asserting the board and RMC received regular management updates on FDTL rule implementation for months. He apologized for passenger hardships, denied any intent to influence government policy, and emphasized ongoing involvement. Neither SEBI nor IndiGo responded to comment requests as the probe continues.
