A co-founder of India's biggest airline IndiGo, Rakesh Gangwal, said reports that a truce had been brokered between him and another co-founder Rahul Bhatia over disagreements on corporate governance were "false and misleading."

In a letter here dated Aug. 5, Gangwal told the board of IndiGo's parent InterGlobe Aviation Ltd (INGL.NS) that issues between him and Bhatia remained unresolved.

Gangwal last month alleged violations of corporate governance rules at InterGlobe, calling for India's securities regulator to intervene.

At the center of Gangwal's complaint were Bhatia-controlled IGE Group's significant controlling rights over IndiGo, which he alleged allows them to carry out "questionable" transactions.

In the latest letter, disclosed by InterGlobe to exchanges on Tuesday, Gangwal said he did not back a proposal by the airline to expand its board of directors to 10, arguing that it would benefit IGE and help it "rework and dilute" an agreed-upon policy on related-party transactions.

InterGlobe lost almost US$1 billion in market value on July 10 after Gangwal disclosed his complaint to regulators, although the shares have recouped most of those losses since then.