NCLT refuses to reopen CG Power books as SEBI probe underway
MUMBAI: The National Company Law Tribunal (NCLT) on Monday said that the books of fraud hit CG Power should not be opened now as a SEBI-commissioned investigation is already underway.
The Mumbai-bench of the tribunal observed that the report of Vaish Associates cannot be termed independent as it was commissioned by the company itself and reopening of the company’s accounts cannot be ordered on the basis of the report and also as agency appointed by SEBI should be allowed to complete its investigation.
The Ministry of Corporate Affairs (MCA) last month approached the NCLT seeking to reopen the financial statements of CG Power Industrial Solutions for the period raging from financial year 2015-19 on the basis of the company’s announcement on the exchange about financial irregularities.
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.
