Fraud-hit CG Power asks firms linked to promoter Thapar to return Rs.3,300 cr
New Delhi: Fraud-hit CG Power and Industrial Solutions on Tuesday said 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." Also, some liabilities and advances to related and unrelated parties had been understated.
In its earnings statement for the July-September quarter, CG Power on Tuesday said: "The Phase-2 investigation has been initiated by the board 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.