Ravi Ruia steps down as chairman of Essar Energy | business | Hindustan Times
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Ravi Ruia steps down as chairman of Essar Energy

business Updated: Dec 21, 2011 22:17 IST

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Essar Energy chairman Ravi Ruia on Wednesday announced his decision to step down from the post amid the CBI claiming that Essar group suppressed facts related to its equity holding in Loop Telecom, an allegation denied by the conglomerate.

Essar Group is surprised and disappointed by the stand taken by the CBI, Essar Energy said in a statement.

Meanwhile, Ravi Ruia has voluntarily decided to temporarily step aside as Chairman but would continue as a director of Essar Energy. Prashant Ruia, presently the vice chairman, would take over as interim chairman.

"This decision follows allegations by India's Central Bureau of Investigation (CBI) that Ruia, certain other executives of the Essar Group and Essar Teleholdings Ltd - an Indian company belonging to the Essar Group, had suppressed facts relating to the extent of equity holding of Essar Group in Loop Telecom Ltd (Loop)," the statement said.

Essar Energy noted that "there are no charges of bribery or corruption or collusion with public servants (as compared to the other prosecutions being pursued in the 2G spectrum scam)".

Ravi Ruia said he believed that as a good corporate governance measure, he should step aside at this time.

"Essar Group has always been open, transparent and law abiding, and I am confident that these charges will be dismissed by the courts in India. I expect that I would resume the office of Chairman at an appropriate time," he noted.

According to Essar Energy, Ravi Ruia and Essar Group deny all charges and intend to take legal recourse to defend their position.