NCLT allows MCA's plea to reopen CG Power's accounts

Mumbai, Mar 5 () 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. SM BALBAL