NCLT allows MCA plea to reopen CG Powers’ books

Mumbai, March 5 (SocialNews.XYZ) The National Company Law Tribunal (NCLT) has approved the Ministry of Corporate Affairs' plea to reopen the financial accounts of CG Power and Industrial Solutions for the period of 2014-15 to 2018-19.

The MCA had approached the NCLT in November seeking to reopen the financial statements of CG Power Industrial Solutions for 2015-19 on the basis of the company's announcement on the exchange about financial irregularities.

The Mumbai bench of the NCLT also directed the government not to rely on the report by Vaish Associates, and asked them to conduct a separate investigation through an independent government agency.

The Centre has already ordered for an investigation by the SFIO. The tribunal also said that the investigating agency should also look into the involvement of ex-Chairman, directors, key managerial persons (KMPs) and other staff of the company.

It also said that the report of the investigating agency should also considered while submitting the recast accounts.

The company in August last year disclosed the findings of risk and audit committee (RAC), which revealed that the firm and the group together could have under-reported Rs 3,600 crore liabilities in financial years 2017 and 2018.

Erstwhile CG Power Chairman Gautam Thapar, CFO V.R. Venkatesh and others were removed from the company board in August over alleged under-reporting and siphoning of money to Thapar's other firms. They were eventually barred from the stock markets and Thapar was also summoned by the MCA.

Thapar, however, has maintained that the transactions took place with due approval of the board.

Source: IANS