Fraud-hit CG Power board sacks Chairman

New Delhi: Power equipment maker CG Power & Industrial Solutions Ltd on Thursday removed its founder tycoon Gautam Thapar as Chairman of the company after an investigation unearthed a multi-crore financial scam in the firm.

The board of the fraud-hit firm through a circular resolution approved by a majority of the members removed Thapar as the Chairman, the company said in a regulatory filing.

Thapar opposed the resolution while CEO and Managing Director K N Neelkant, whose continuance has been questioned by investors, abstained from voting on the resolution.

The board is likely to meet on Friday to elect a new chairman, sources privy to the development said. In all likelihood, one of the independent directors will be appointed as the non-executive chairman.

"In cognizance of the current situation being faced by the company and the recent developments, including disclosures dated August 19, 2019 made by the company, the Board of Directors through a circular resolution dated August 29, 2019, passed by majority consent, have resolved to remove Gautam Thapar as the Chairman of the Board with immediate effect," the company said in the filing.

The decision, it said, "has been taken in the interests of the company and its stakeholders in the discharge of the fiduciary responsibilities of the Board".