CG Power Board sacked Gautam Thapar as chairman with immediate effect: CG Power & Industrial Solutions on Thursday said its board had sacked Gautam Thapar as its chairman with immediate effect after an investigation unearthed a multi-crore financial scam in the firm.
“Because of the current situation faced by the company and recent developments, including the disclosures made by the company on August 19, 2019, the Board of Directors … passed with the consent of the majority, resolved to remove Gautam Thapar. “Chairman of the board with immediate effect,” CG Power said in a regulatory filing.
CG Power stated that the decision was taken in the interest of the company and its stakeholders, who were discharging the discretionary responsibilities of the board.
On August 20, the company said that an investigation set up by its board had found major governance and financial lapses, including some assets provided as collateral and by “identified company personnel” both current and past The amount of money lent was included. Some non-executive directors. “Also, certain liabilities and advances were deemed for related and unrelated parties.
While the board on May 10, CEO and Managing Director K. N. While Nilkanth was sent on leave pending an investigation into some “suspicious, unauthorized and unknown” transactions, Thapar continued as the company’s chairman.
Thapar holds only 8,574 shares out of 62.6 crore shares in the company. Although a founding promoter of CG Power, he lost almost all of his shares after lenders, in previous years, he called for pledges made to borrow money.
CG Power had said that the transaction was carried out in a “seemingly insidious manner” and that it would investigate further.
It had stated that the company’s current and past employees, including unnamed non-executive directors and certain key managerial personnel (KMP) provided certain assets of the company as collateral and made the firm a co-borrower or guarantor to obtain loans without due authorization.
The funds so raised were routed out of the company. This, the company said, had been going on for two years now.
Advances to related and unrelated parties of the company and group may have been potentially understated by ₹1,990.36 crore and ₹2,806.63 crore, respectively, as on March 31, 2018, and by ₹1,479.34 crore and ₹1,331.47 crore, respectively, as on April 1, 2017, a regulatory filing had said.
According to the filing, recovery of these amounts, together with interest, will be evaluated with appropriate legal inputs.
Also, total liabilities of the company and group may have been potentially understated by ₹1,053.54 crore and ₹1,608.17 crore, respectively, as on March 31, 2018, and by ₹601.83 crore and ₹401.83 crore, respectively, as on April 1, 2017, it remarked.
The filing said that these transactions were done through various means, including routing through improper nets, subsidiaries, promoter affiliated companies and other affiliates using unrelated third parties. Parties.
The company now plans to conduct a detailed forensic investigation to establish the wrongdoing.
Yes, Bank holds 12.79 percent stake in CG Power, after which it applied for the shares pledged by Thapar’s Avantha Holdings Ltd in May. HDFC Asset Management Company and mutual funds such as Aditya Birla Sun Life AMC Limited and Life Insurance Corp (LIC) are shareholders of CG Power.
Shares of CG Power were trading 4.74 percent higher at $ 9.95 per piece on BSE.
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