In a lenders convened board meeting today former SEBI chairman GN Bajpai replaced Prashant Jhawar as non-executive chairman of Usha Martin Ltd (UML).
Prashant Jhawar in a statement claimed that he was removed 'improperly' without any cogent reasons and alleged no rationale have been provided for his removal.
"I have been wrongly removed as a chairman in not just a legally but ethically incorrect manner," he added claiming he continues to be a director of UML
UML has a debt of about Rs 5,000 crore and had reported a consolidated net loss of Rs 109.2 crore in the December quarter. SBI is the largest lender to Usha Martin with an exposure of Rs 2,600 crore.
Jhawar alleged that "this board meeting itself was convened and held without compliance and applicable corporate governance and secretarial standards and therefore B K Jhawar and myself abstained from the improperly convened board meeting."
There are rumours of a family feud.
Attempts to contact his brother Rajeev Jhawar who is the managing director went futile.
Disclaimer: No Business Standard Journalist was involved in creation of this content
