CG Power and Industrial Solutions Limited has disclosed that the Directorate of Enforcement (ED) has frozen the company’s new bank account, opened with State Bank of India’s CAG Branch in Chennai, under Section 17(1A) of the Prevention of Money Laundering Act, 2002 (PMLA). This action is linked to an ongoing investigation regarding transactions from a previous period involving the company’s erstwhile promoter group.
Key Details:
- The account was opened solely to receive an amount of ₹6.31 crore, which was transferred from a beneficiary of CG Middle East FZE, a former step-down subsidiary of CG Power.
- The ED order prohibits any debit transactions from the account without prior permission.
- Despite this, CG Power confirmed that the freezing of the account has no impact on the company’s current financial position.
CG Power, under its new management, is fully cooperating with the ED in its investigation
