Pressure is mounting on the owners of Crawley Town football club after soccer authorities forced the bankrupt chairman to step down and banned the club from bringing in new players.

Chas Majeed, 36, has told the Football Association he is quitting as chairman after revelations in The Argus that he is bankrupt.

But the club denied reports he has resigned completely, saying in a statement: "Chas will continue to work regularly at the stadium, demonstrating his passion and commitment to Crawley Town."

The statement did not say who would be replacing Chas as chairman but it is thought the club would now be run by his brother and sole-owner Azwar, 30, who, himself, is before the courts on an assault charge.

It also emerged yesterday that the Football Conference has placed an embargo on transfer activity at the club because the Majeeds have not been paying players' wages.

If squad members decide to leave, the club would not be allowed to replace them with paid players.

The brothers are likely to face the wrath of fans at Saturday's match against Cambridge United as supporters plan a "red card" protest.

The FA challenged Chas Majeed to prove he is a fit and proper person to run a football club following our scoop that he was declared insolvent in May 2004 and has not been discharged.

It is against FA rules and illegal for a bankrupt to hold a position of power at a club.

An FA spokesman said: "Mr Majeed replied that he could not complete such a test because he was an undischarged bankrupt.

"He informed us he had subsequently ceased his position as chairman of Crawley Town and withdrawn from any directorial role at the club. He can still work at the club but not in a directorial role.

"We will monitor the situation but no further action is being taken at this stage."

Azwar appeared before magistrates in Worthing on Tuesday and denied assaulting Martyn Grainger, 19, in Worthing last September.

The case was adjourned until April 25. A more serious charge of grievous bodily harm was dropped.

Any criminal conviction would be unlikely to affect Mr Majeed's status as the owner of the club.

The Football Conference refused to comment on their transfer embargo on Crawley Town but PFA spokesman Simon Barker, a former Queens Park Rangers player, said: "I spoke to a group of players and the club and we are trying to find a way forward to ensure the players' contracts are honoured.

"At the moment they are not being paid and it is testament to their professionalism that they are continuing to serve the club and win games."

In a statement, the club promised to pay the wages and repeated its claim that the financial problem was caused by the withdrawal of a silent investor last month.

The Majeeds announced they were to slash the wage bill by 50 per cent and sell the entire squad.

The statement said: "The financial situation has been as much of a challenge for the management team as it was for the players to fight their way up from the relegation zone.

"The players' welfare has always been the prime concern of the owners.

"Despite the best efforts to attract potential investors, no additional finances have been generated for the club."

Crawley Town assured fans Mr Majeed's bankruptcy was an administrative error and he simply needed to apply through the courts to be discharged.

But his discharge has been suspended indefinitely and The Argus understands his creditors would fiercely oppose any application by Mr Majeed.

Supporters are now united behind calls to oust the Majeeds, who run the club through the SA Group.

One fan said: "Hold your red cards high with pride, get SAG out but support our team and get our club back and restore accountability with our fans."

A supporter, who is organising the protest, said: "It's good to see the FA is on to the situation but the fact remains Azwar is still in charge and we think Chas will still be involved behind the scenes.

"The Majeeds did not realise that the fans are the real owners of this club and we will be there long after they have gone, which will hopefully be sooner rather than later."

Many supporters would prefer the club to be forced into administration and drop down the leagues than the Majeeds to carry on.