A forensic audit, commissioned by BSE(formerly Bombay Stock Exchange), confirmed financial irregularities within CG Power.
As a result, the Securities Exchange Board of India (SEBI) sent a formal notice to the company. The forensic audit was given to CG Power for their comments.
In their filing, the company said, “Pursuant to the Interim Order of Sebi, BSE had appointed a forensic auditor to verify the books of accounts, wrongful diversion / siphoning of Company’s funds and other related matters for period 2015-16 till the date of the Interim Order. The forensic auditor completed its audit and has submitted its report to Sebi. The company has received a copy of the Report from Sebi on September 4, 2020.”
The company has already started recovery from its former directors and KMPs. The filing by the company added, “The company has filed a suit for recovery against identified promoter affiliate company, former directors connected with the promoter group and former KMPs (key managerial personnel) for recovery of sum of ₹1416.07 crore for siphoning off funds. This suit is in addition to suits filed by the Company towards the loss caused to a company’s subsidiary, for sum of ₹1709.46 crore.”
— Jayshree P Upadhyay (@jaysh88) September 8, 2020