Companies

CG power board says report on financial fraud to be ready by Q4 this year

Our Bureau Mumbai | Updated on November 12, 2019 Published on November 12, 2019

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The CG power Board today said that the second phase of its investigation into alleged financial wrongdoing by its former Chairman Gautam Thapar is underway. The report of the ongoing investigation shall be submitted to the Board in due course, it said in a filing to the stock exchanges. The investigation is expected to be completed by fourth quarter of FY 2019-20, it added.

Based on the available financial information, the company has issued recovery notices to seven entities demanding repayment of Rs 1,314.78 crore. Another three notices were sent to recover Rs 452.12 crore, have been returned undelivered. Besides, recovery notices for claims of Rs 74.63 crore owed could not be sent for want of requisite details, the board said in its filing.

Out of the recovery notices sent by CG Power, responses have been received from two entities for seeking for particulars of the claim made by the company. Another entity, which had payable amount of Rs 685 crore, made a counter claim of Rs 525.21 crore with an interest of 15.70 per cent per annum from April 30 this year.

Another entity which had dues of Rs 68.50 crore has stated there is no amount outstanding, the filing said. Based on the information, the CG Power management believes the responses received are untenable and will continue its legal course.

Published on November 12, 2019
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