Look Out Circular Against Fraud Accused Ousted CG Power Chairman Gautam Thapar; SFIO Likely To Investigate Case

The Ministry of Corporate Affairs (MHA) has issued a look-out circular against Gautam Thapar, the ousted chairman of fraud-hit CG Power and Industrial Solutions.

The MCA which is inspecting the books of the company is likely to refer the case to the Serious Fraud Investigation Office (SFIO).

Earlier, the company was hit by an accounting scandal and liabilities of the group for 2017-18 were found to be understated by more than Rs 1,600 crore.

According to an audit committee report, funds were allegedly diverted from CG Power and fraudulently transferred to its promoter company Avantha Holdings as well as entities connected with the company like Avantha International, Acton, Ballarpur International, Mirabelle and Solaris, without knowledge of the company or any approval from its board.

It may be recalled that resignation of the company’s auditor had triggered an MCA inquiry into CG Power and Industrial Solutions.

Recently, the Securities and Exchange Board of India (SEBI) had debarred Gautam Thapar from accessing the capital market for a number of alleged irregularities, including diversion of money.

SEBI had barred the company’s chief financial officer (CFO) as well as two directors for their role in allegedly dubious transactions. It also restrained three entities belonging to the Thapar-led Avantha Group from diverting their money or selling their assets.

SEBI had also directed CG Power to take necessary steps to recover the amount due to it and take legal action to safeguard the interests of its investors.