NCLT allows MCA's plea to reopen CG Power's accounts from FY15 to FY19

The ministry in its prayer had said the reopening of the books of accounts is needed to bring out the truth in the larger public interest.

The National Company Law Tribunal (NCLT) on Thursday allowed a government petition seeking to reopen CG Power and Industrial Solutions accounts from 2014-15 to 2018-19.

The corporate affairs ministry had filed an application in the NCLT seeking the appointment of an independent auditor to reopen the accounts of CG Power & Industrial Solution from 2014-15 to 2018-19.

The ministry in its prayer had said the reopening of the books of accounts is needed to bring out the truth in the larger public interest.

The Mumbai-bench -- comprising members Bhaskara Pantula Mohan and Rajesh Sharma -- in its order also directed the government not to rely on the report by Vaish Associates, and asked them to conduct a separate investigation.

The tribunal also denied CG Power & Industrial Solution founder Gautam Thapar's plea to grant stay on the order.

Earlier in January, the NCLT had quashed the audit report submitted by Vaish Associates, terming it bogus.

Thapar was sacked based on this report, which was in fact penned by a rival agency KPMG.

Dismissing the Vaish report, the bench had said it would rely only on a report either ordered independently or by a government agency in the matter.

The Vaish report was ordered by the board of CG Power.

Following report, the markets regulator Sebi had banned Thapar and entities associated with him for three years from the market, following which he moved the Securities Appellate Tribunal, which has asked the company to provide relevant documents to him but upheld the ban on him.

Late November, the ministry asked the SFIO to launch a probe into the affairs of the company and 15 group entities.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel