CG Power board moves to remove Avantha Holdings as promoter
Mumbai: The board of CG Power & Industrial Solutions (CG) has initiated the process to remove the Gautam Thapar-led Avantha Holdings, now owning an insignificant stake, as the company’s promoter in the wake of its alleged role in financial irregularities at the power-equipment maker.
The promoter entities together hold only 8,574 shares in the loss-making CG, which may have lost Rs 3,000 crore due to alleged financial irregularities involving nine transactions.
“The board cannot de-classify a promoter. It has to be done by the regulator. The board has taken legal advice and would be soon approaching Sebi on this,” a CG spokesperson told ET.
