MUMBAI: Gautam Thapar, who was ousted as chairman of CG Power & Industrial Solutions after a multi-crore rupee financial scam was unearthed, has sent a legal notice to the company board contesting his removal which he said was illegal.
The board, which accused Thapar of siphoning funds from the company, will respond to the notice after consulting its legal team, officials aware of the development said.
Thapar was fired on August 29 after whistleblowers informed some board members about transactions allegedly not covered in the company’s audited accounts.
VG Venkatesh, the company’s chief financial officer who was also sacked, was prevented from leaving the country at Mumbai airport on September 7, following lookout circulars (LoC) issued against him and Thapar by the ministry of external affairs on the request of the ministry of corporate affairs.
Venkatesh, a Belgian passport holder, was said to be bound for Belgium in the wee hours of Saturday, people aware of the development said.
“Lookout circulars have been opened at the request of the ministry as a preventive measure to ensure that they don’t flee the country,” an official said.
The board is said to have submitted the details of all transactions, which allegedly involved shell companies, to the ministry of corporate affairs.
The ministry has passed them on to the Enforcement Directorate.
The financial damage to CG’s balance sheet is now estimated to be in excess of Rs 3,000 crore.
A government official said there is a possibility of the ministry’s Serious Fraud Investigation Office probing the matter if required.
Thapar was unavailable for comment. A mail sent to the board of CG Power was unanswered.
Law firm Cyril Amarchand Mangaldas represents CG Power, while Shardul Amarchand Mangaldas & Co. represents Thapar.