NCLT allows MCA to reopen CG Power accounts for 5 years
The Mumbai Bench of the NCLT has allowed re-opening of the books of account and recasting of financial statements of CG Power and Industrial Solutions Ltd for the past five years. The Ministry of Corporate Affairs (MCA) had filed the plea with NCLT for re-opening the books after allegations of fraud were levelled against Gautam Thapar who was ousted as the Chairman of CG Power.
‘Liabilities may be understated’
MCA had said that the total liabilities of the company and the Group may have been potentially understated by about ₹1,053.54 crore and ₹1,608.17 crore, respectively, as of March 2018; and by ₹601.83 crore and ₹401.83 crore, respectively, as of April 2017. Advances to related and unrelated parties of the company and the Group may have been potentially understated by ₹1,990.36 crore and ₹2,806.63 crore, respectively, as of March 2018; and by ₹1,479.34 crore and ₹1,331.47 crore, respectively, as of April, 2017.
