CG Power sends boss Gautam Thapar packing

Mumbai, Aug 29: Days after revelation of fraud at CG Power, the company's board on Thursday sacked its Chairman Gautam Thapar with immediate effect.

The company, in a regulatory filing, said that in cognizance of the current situation being faced by the company, the Board of Directors have decided to "remove Gautam Thapar as the Chairman of the Board with immediate effect".

The company was hit by a major corporate governance issue involving unauthorised transactions and understatement of liabilities which caused a massive loss in share value.

The company had disclosed the findings of its risk and audit committee (RAC), which revealed that the firm and the group together could have under-reported liabilities to the extent of over Rs 3,600 crore in FY17 and FY18.

They also understated the loans advanced to related and unrelated parties to the tune of about Rs 7,600 crore during the two financial years.

"Recoverability of such amounts along with any interest and other related amounts, from related and other unrelated parties, will be evaluated with appropriate legal inputs, after which necessary actions will be instituted," the company said in a regulatory filing to the BSE.