Mumbai: A week after its board-instituted investigation unearthed a multi-crore financial fraud, CG Power & Industrial Solutions removed its founder Gautam Thapar as chairman of the company, prompting the tycoon to break his silence to say that there was neither any fraud nor any misappropriation of funds.
The board through a circular resolution approved by a majority of the members removed Thapar as the chairman, the company said.
Thapar opposed the resolution, while CEO and MD 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.
Thapar, who had not commented since the company disclosed financial irregularities on August 20 after a marathon board meeting on the previous day, in a statement said: "No promoter or promoter entity has derived any undue benefit. There is simply no fraud".