Tuesday, 17 September 2019

Sebi bans Gautam Thapar, three others from markets over CG Power fraud

Sebi restrained three entities belonging to Thapar-led Avantha Group from diverting their money or disposing of their assets
Gautam Thapar
The Securities and Exchange Board of India (Sebi) on Tuesday debarred Gautam Thapar, the ousted chairman of fraud-hit CG Power and Industrial Solutions, from accessing the capital market for a number of alleged irregularities, including diversion of money.
The market regulator also barred the chief financial officer (CFO) and two directors of the company for their involvement in dubious transactions. Further, Sebi restrained three entities belonging to Gautam Thapar-led Avantha Group from diverting their money or disposing of their assets. It has also directed CG Power to take necessary steps to recover the amount due to it and take legal action to safeguard the interests of investors.
The Sebi order comes nearly a month after the CG Power board said the company had been hit by an accounting scandal and the liabilities of the group had been understated by over Rs 1,600 crore for 2017-18. Sebi said Thapar-promoted and -related entities owed Rs 1,723.19 crore as receivables to the company, while connected parties owed another Rs 462.74 crore…

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