SBS chairman Nihal Gupta is resigning from the broadcaster, citing “personal family reasons”.

Communications Minister Mitch Fifield thanked Mr Gupta for his service to the broadcaster in a statement on Wednesday.

“The government thanks Mr Gupta for his service to SBS and commitment to a multicultural Australia,” he said.

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Mr Gupta said: “It has been a privilege to chair SBS and I wish the organisation all the best for the future.”

Mr Gupta has served as chairman of the SBS board of directors since October 2014. He was appointed to the role after beating former NSW Premier Nick Greiner.

Last year, Labor communications spokesman Jason Clare called on the government to sack Mr Gupta, after it was revealed he was the managing director and only employee of Digital Electronics Corporation Australia. Mr Gupta dismissed requests to answer questions at a Senate estimates hearing.

The SBS board of directors is delegated by the federal government. SBS deputy chair Dr Dellal will act as chairman until the government begins the process of appointing a new chair.

In a statement, Dr Dellal thanked Mr Gupta for his service on behalf of the SBS board.

“The SBS board understands and fully respects Mr Gupta’s decision. We thank Mr Gupta for his valuable contribution to SBS and wish him well.”