Sebi audit of CG Power points to collusion between company’s lenders and promoters

A forensic audit of CG Power and Industrials Solutions conducted by the Securities and Exchange Board of India (Sebi) has pointed to manipulations in the company’s books of accounts and a wider collusion between some of its lenders and the erstwhile management led by former chairman Gautam Thapar.

In an exchange filing on 8 September, CG Power informed the stock exchanges about the forensic audit but did not divulge details. The company also said that it had received a copy of the report from the market regulator on 4 September. In bulk of the problematic transactions, lenders to CG Power were aware of the lapses, according to the report by MSA Probe Consulting Pvt. Ltd, a copy of which was reviewed by Mint.