CG Power fraud: Thapar questioned by MCA
MUMBAI/BENGALURU: Expelled CG Power President Gautam Thapar He was interrogated by the Ministry of Corporate Affairs ( MCA ) on Tuesday in relation to the financial irregularities in the company.
CG Power is being probed for certain unauthorized transactions carried out over two years by its past and present employees, including actions like understating the company's liabilities by more than Rs 1,000 crore. The board on August 20 informed the BSE that a legal investigation by Vaish Associates revealed financial irregularities at the company.
The Vaish report - as quoted by CG Power 's board - said that loans had been secured for third-parties with CG Power' s assets being used as collateral, or with CG Power named as co-borrower or guarantor. But, sources from the Gautam Thapar camp said the non-board authorized Vaish report was a preliminary, inconclusive report and that it has a disproportionate number of disclaimers and reservations. If the final report comes out, then the conclusion would be different, said sources.
The CG Power stock took a beating, hitting a 52-week low, after the company made the disclosure to the exchanges based on the Vaish report.
CG Power 's board also said such unauthorized transactions had been going on for more than two years due to insider employee fraud by non-executive directors, certain key managerial personals and others.