New Delhi: Fraud-hit CG Power and Industrial Solutions said Tuesday it has asked companies linked to promoter Gautam Thapar among others to return over Rs 3,300 crore and has initiated the second phase of the probe to fix responsibility for the alleged fraudulent transactions.
CG Power had in August stated that an investigation instituted by its board had found major governance and financial lapses, including some assets being provided as collateral and the money from the loans siphoned off by ‘identified company personnel, both current and past, including certain non-executive directors’. It said that, some liabilities and advances to related and unrelated parties had been understated.
In its earnings statement for the July-September quarter, CG Power said Tuesday: “The Phase-2 investigation has been initiated and update/report of the ongoing investigation shall be submitted to the board in due course. The investigation is expected to be completed by the fourth quarter of FY 2019-20.”
The firm said it has issued recovery notices to seven entities demanding repayment of Rs 1,314.78 crore owned by them to the company. Besides, its subsidiaries have sent 23 notices to recover Rs 2,095.64 crore.
“Three notices sent by the company (recovery amount Rs 452.12 crore) and nine notices sent on behalf of the subsidiaries (recovery amount Rs 429.85 crore) have been returned undelivered,” CG Power said. “Besides, recovery notices for claims Rs 74.63 crore owed to the company and Rs 395.18 crore owed to certain subsidiaries could not be sent for want of requisite details including communication details,” it added.
The company stated that a total of Rs 3,018.62 crore was receivable from ‘various promoter affiliate companies and connected parties’. These include Rs 1,001.38 crore from Thapar’s Avantha Holdings Ltd. Another Rs 287.75 crore was due from Blue Garden Estate Pvt Ltd and Rs 175 crore from Acton Global Pvt Ltd – two firms which were classified as ‘promoter connected party’.
It should be stated here that the board of CG Power had in August end sacked Gautam Thapar as chairman and thereafter forced CEO KN Neelkant to resign.
The board of troubled power equipment manufacturer said it has withdrawn of its amalgamation plans with its wholly-owned subsidiary CG Power Solutions.
The decision to withdraw was taken in the backdrop of findings of the phase-I investigation report, which had alleged financial fraud by its former chairman Gautam Thapar. However, he had previously denied wrongdoing and said no transaction was done without the knowledge of the board.
PTI