A credit facility extended by Yes Bank to Avantha Holdings has been cited as one of the nine reasons for the ouster of Gautam Thapar as Chairman of CG Power.
According to documents filed in NCLT, Yes Bank had sanctioned credit facility amounting to ₹500 crore to Avantha Holdings Limited (Gautam Thapar’s company and previous parent company of CG Power) in October 2015. CG Power had issued a comfort letter dated April 4, 2015, and had furnished a cheque for ₹210 crore along with a declaration for submission of cheque in favour of Yes Bank for the credit facility.
The board of CG Power only became aware of the comfort letter when a request was made by Yes Bank in April 2019, for renewal of the cheque as mentioned above. CG Power received a legal notice dated April 30, 2019 from Yes Bank under Section 138 of the Negotiable Instruments Act, 1881 for the dishonour of cheque bearing No. 903547 dated January 15, 2019, and for recovery of the amount payable to Yes Bank.
Gautam Thapar personally represented to Yes Bank that he was the person in charge of CG Power and responsible for conducting the day to day affairs of CG Power.
This transaction was mentioned by the Regional Directorate (Western Region) Ministry of Corporate Affairs in its inspection report submitted to NCLT
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Published on
March 06, 2020
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