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Gautam Thapar

Dec 12, 2019, 12.07 PM IST

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SFIO begins probe against CG Power and Industrial Solutions, 15 group firms

The company had in August said that an investigation instituted by its board had found major governance and financial lapses, including some assets being provided as collateral and the money from the loans siphoned off by "identified company personnel, both current and past, including certain non-executive directors".

MCA plea to reopen CG Power books likely

According to a person in the know, the MCA’s probe has indicated a suspicious diversion of more than...

CG Power seeks shareholders' nod to borrow up to Rs 5,000 crore to revive business

The company is also seeking external advice on mode and so...

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  • A mail seen by IANS, shows that Omkar Goswami, an independent Director of the company suggested his colleagues to desist from sharing the minutes of meetings from Aprl 1, 2015 at "one go" to ousted Chairman Gautam Thapar. Thapar and other accused have blamed the current management of not providing the required documents sought by them to defend themselves.

    Lenders are reluctant to give fresh loans to the company hit by allegations of corporate governance violations and fraud. They are nervous about the way the cash flows are managed and want to monitor the daily expenses, and hence all expenditures will be approved through Belgium-headquartered auditing firm BDO.

    SEBI in its order to CG Power's company secretary Shikha Kapadia stated that the next date of hearing that was scheduled for December 6 has been postponed.

    Any association with Thapar will harm the interests of the company, says firm's annual report.

    The National Company Law Tribunal (NCLT) directed the ministry to issue notices to market regulator Sebi, the income tax department and Thapar to file reply within a week and also asked the ministry to file the rejoinder a week later. The tribunal has posted the matter for more hearing to December 16.

    Sources said MCA has filed a petition before the Mumbai-bench of the National Company Law Tribunal (NCLT) seeking permission to re-open the books of account and recast the financial statements of CG Power and its subsidiary companies for the past five financial years beginning 2014-15.

    A recent investigation by the company revealed that nine wrongful transactions, allegedly undertaken by the promoter group led by Gautam Thapar, had caused it a loss of around Rs 3,000 crore. The company is doing a deeper investigation under what it calls ‘Phase 2’, even as the Ministry of Corporate Affairs has referred the case to the SFIO.

    V.R. Venkatesh, the former CFO, CG Power has denied any sale of property in Nashik in connection to the CG Power fraud he is primarily accused of. In its investor presentation in August, CG Power had listed several alleged discrepancies or fraudulent transactions including two instances of sale of company properties in Nashik and Kanjurmarg.

    CG Power had in August stated that an investigation instituted by its board had found major governance and financial lapses, including some assets being provided as collateral and the money from the loans siphoned off by "identified company personnel, both current and past, including certain non-executive directors."

    The company has sought an exemption on tapping the markets from the Sebi.

    Lenders including KKR and Yes Bank have converted the pledged shares into equity.

    It has directed Thapar and others to approach the Securities and Exchange Board of India(Sebi) to obtain all the documents they would require to defend their case.

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