Essar Energy said chairman Ravi Ruia would step aside temporarily after the Central Bureau of Investigation (CBI) alleged that he had suppressed facts about the extent of an Essar Group holding in Loop Telecom, which is being probed in a multi-billion-dollar telecoms case.
The CBI filed fraud charges against Ruia and other executives at Essar Group, which has interests spanning energy and telecoms to steel and shipping, and Loop on Monday.
Ruia and Essar Group deny all charges and intend to take legal recourse, Essar Energy said on Wednesday.
Essar Energy said allegations made by the CBI related to the extent of Essar Group’s equity holding in Loop Telecom.
It added that the charges did not relate to Essar Energy, and were not expected to have any impact on Essar Energy’s business operations.
Prashant Ruia, vice chairman of Essar Energy, had been appointed interim chairman, it said.
Shares in Essar Energy, which is 76.7 percent owned by holding company Essar Global, were 2.5 percent lower ar 173.4 pence at 1150 GMT.