Board-ordered probe finds financial lapses at CG Power

Corporate governance violations have surfaced at CG Power and Industrial Solutions, with the board-led investigations revealing wrongdoings by current and past employees. The probe has alleged that these employees understated liabilities and advances made to related parties while pledging assets of the company without permission. The news sent CG Power shares crashing by 20% on Tuesday.

The allegations came to light after the board of the company, formerly owned by Gautam Thapar, disclosed the findings of the investigations to stock exchanges following a meeting on Monday. CG Power had appointed a law firm to examine “some unauthorised transactions by certain employees”. The company did not name the employees.