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MCA moves NCLT against former management of CG Power
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Synopsis
In 2019, the board of CG Power & Industrial Solutions had to restate its earnings after finding suspected fraudulent transactions by its chairman and few confidantes had removed its chairman Gautam Thapar alleging misappropriation of funds. Thapar refuted the allegations and claimed he had repaid Rs 4,000 crore to many lenders since 2015.
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The Ministry of Corporate Affairs (MCA) has approached the Mumbai bench of the National Company Law Tribunal (NCLT) against the erstwhile management Avantha Group-owned CG Power & Industrial Solutions seeking its intervention to recover the money that “the erstwhile management had allegedly collected and seeking to distribute it to the victim of fraud”. Power equipment major CG Power did not comment. Gautam Thapar former CG chairman too did not respond to a mail from ET.