Mumbai, March 11 (SocialNews.XYZ) Security market regulator Sebi on Wednesday said that the ban will continue on former CG Power Chairman Gautam Thapar along with three former key management personnel from the markets and other Sebi-registered or listed companies.
The other officials banned are CG Power's former CFO V.R. Venkatesh and former directors Madhav Acharya and B. Hariharan.
"Gautam Thapar, V. R. Venkatesh, Madhav Acharya and B. Hariharan are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities in any manner whatsoever, either directly or indirectly, till further orders," said the Sebi order.
The order, however, permitted them to liquidate up to 25 per cent of the value of the securities held by them. It said that they "are restrained from being associated with any intermediary registered with SEBI or any listed entity or its material unlisted subsidiary, in any manner whatsoever, till further orders".
The regulator said that CG Power and Industrial Solutions shall continue to take all necessary steps to recover the amounts due to the company, which were extended, either directly or indirectly, from these four along with due interest expeditiously and take necessary action, including legal actions, to safeguard the interest of the investors of the company.
The order by Sebi wholetime member, G. Mahalingam also noted that Thapar and the other noticees in their submissions have contended that the concerned dubious transactions were carried out with the knowledge and approval of the company as the MD and CEO, RAC (risk and audit committee) and the company's employees were either directly involved or informed of such transactions at every stage and further, requisite approval for such transactions were accorded by the MD and CEO and the Board of Directors along with the RAC.
Mahalingam observed that the role of the board of directors and RAC among others should also be examined by Sebi.
The order noted that Sebi has already ordered a forensic audit and the Report is expected very shortly.
Sebi's order comes around a week after the Mumbai bench of the National Company Law Tribunal (NCLT) 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 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 Thapar, CFO 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
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