CG Power, Avantha
CG Power, Avantha
Litigation News

NCLT allows Centre's plea to re-open accounts of CG Power & Industrial Solutions

Aditi Singh

The National Company Law Tribunal, Mumbai today allowed the Central Government’s plea to re-open the accounts of CG Power and Industrial Solutions from the 2014-2015 to 2019-2019. (UOI vs CG Power and Industrial Solutions & Ors)

CG Power and Industrial Solutions is facing an investigation by the Serious Fraud Investigation Office (SFIO) and the Securities and Exchange Board of Idnia (SEBI) for financial irregularities. The irregularities had surfaced after the new management of the company discovered major governance and financial lapses and declared the same before NSE. As per reports, the financial loss to the company due to the lapses was around Rs 3,300 crore.

While ordering the re-opening of the books of account for the last five years, the NCLT stated,

“The point to be remembered here is that even a doubt on the fairness of financial statements is enough for this tribunal to order for re-opening and recasting of the financial statements.”
Bar and Bench - Indian Legal news