CG Power case: Look out circular issued against ex-chairman Gautam Thapar

The case could be referred to the Serious Fraud Investigation Office (SFIO) if the preliminary inspection report points to a fraud and gaping holes in the books of the firm

The government has issued a look-out circular against Gautam Thapar, the ousted chairman of fraud-hit CG Power and Industrial Solutions, said senior official.

“We are looking at the gaps in the company’s books. The circular has been issued as a pre-emptive measure,” the senior official added. The circular has been issued at the behest of the Ministry of Corporate Affairs (MCA), which is currently inspecting the books of the company. The case could be referred to the Serious Fraud Investigation Office (SFIO) if the preliminary inspection report points to a fraud and gaping holes in the books of the firm.

A month ago, the company was hit by an accounting scandal and the liabilities of the group were found understated by over Rs 1,600 crore for 2017-18. “Funds diverted from CG Power were fraudulently transferred to its promoter company Avantha Holdings and entities related/connected with the company, Avantha International, Acton, Ballarpur International, Mirabelle and Solaris, without knowledge of the company and without any approval from its board,” the report of the risk and audit committee said.

The regional director’s (RD’s) office of the MCA – western region – is conducting the inspection and is likely to submit its report soon. The RD’s office has questioned more than 20 persons in connection with the matter so far. Resignation of the company’s auditor had triggered an MCA inquiry into CG Power and Industrial Solutions..

Saudi’s inability to stop oil attack exposes gaps even with top US defences

The Saudis clearly were not prepared for this assault, which was unusual in its execution and unprecedented in its targeting

Saudi Arabia spent billions to protect a kingdom built on oil but could not stop the suspected Iranian drone and missile attack, exposing gaps that even America’s most advanced weaponry failed to fill. In addition to deciding whether that firepower should be turned on Iran in retaliation, the Saudis and their American allies must now figure out how to prevent a repeat of last weekend’s attack – or worse, such as an assault on the Saudis’ export facilities in the Persian Gulf or any of the desalination plants that supply drinking water.

Secretary of State Mike Pompeo was asked Wednesday on his way to Saudi Arabia how it was possible that the kingdom could have dropped its guard, failing to stop any of the low-flying cruise missiles or armed drones that struck the Abqaiq oil processing center – the largest of its kind in the world – and the Khurais oil field. Even the best air defences sometimes fail, he replied.

“We want to make sure that infrastructure and resources are put in place such that attacks like this would be less successful than this one appears to have been.” Easier said than done. “This is an attack of a scale we’ve just not seen before,” Pompeo said. He called the strike “an act of war” but not say what military response might follow…

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

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…