Sebi bans Thapar, others from mkt in CG Power case

MUMBAI: Sebi on Tuesday afternoon intervened to contain any additional damage to CG Power Industrial solutions. The regulator banned its former president and promoter Gautam Thapar and some of the main former employees for interfering in the affairs of the company and also for participating in the market for alleged embezzlement and diversion of funds.

Last month, CG Power’s board had sacked Thapar as its chairman after an investigation unearthed a multi-crore financial scam in the firm.

Sebi asked Thapar, V R Venkatesh, Madhav Acharya and B Hariharan, all formerly with CG Power, to not associate with any Sebi-regulated entity or their material subsidiaries.

Sebi asked the Bombay Bag (BSE) to designate an auditor to review the company's books for manipulations, fraud, illicit diversion of funds, etc., and said auditors should submit a report to the market regulator within six months.

Sebi also asked Avantha Holdings, Acton Global and Solaris Industrial Chemicals, which are either CG Power 's group companies or associated with it through the promoters, to retain all their funds and other assets, to the extent of receivables shown as outstanding to CG Power . It also barred these entities from selling any of their assets till further orders.

Sebi approved a 32-page order Tuesday night after hearing suo motu of certain news reports about alleged fraud in the company, the regulator said. He noted several violations of his rules by Thapar and other entities that were associated with the company.

On August 30, a committee consisting of independent directors of the company presented a report that pointed to Thapar and his partners financial fraud and irregularities had been allowed, accumulating around Rs 2,200 crore for several years.