SFIO initiates probe into affairs of CG Power

Fraud-hit CG Power on Wednesday said that the Serious Fraud Investigation Office (SFIO) has initiated investigation into the affairs of the company and its group entities.

In a regulatory filing, the company said that it is committed to cooperate in the investigation.

"The company has received a letter dated December 9, 2019, informing the company that the Central Government, has ordered an investigation by the SFIO into the affairs of the company and its 15 related/group companies vide 'Order No. F. No. 01/116/2019 - CLII(WR)' dated November 6, 2019. The said SFIO investigation has been initiated," it said.

CG Power has been under the MCA scanner over alleged misreporting of numbers. In August, the Ministry had summoned Gautam Thapar, erstwhile Chairman of the company, along with other executives and the company's auditor.

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

Erstwhile executives, Chairman Thapar, Chief Financial Officer V.R. Venkatesh among others were removed from the company board in August, over alleged under-reporting and siphoning of money to Thapar's other firms.

Thapar, Venkatesh and other CG Power executives Madhav Acharya and B. Hari Haran were eventually barred from the stock markets and Thapar was also summoned by the Ministry of Corporate Affairs. Thapar, however, says that the transactions took place with due approval of the board.

( With inputs from IANS )