CG Power hit by suspected serious fraud, fires CEO

India: The board of CG Power and Industrial Solutions Ltd said the company will restate accounts after discovering significant accounting irregularities and governance lapses, sending its shares plunging by the maximum daily limit of 20 %.

The board said it has found “suspect” transactions that have led to significant understatement of the company’s liabilities and advances to related and unrelated parties.

The board of CG Power and Industrial Solutions Ltd, also sacked its chairman Gautam Thapar.

Thapar has denied allegations that he misappropriated funds of the power equipment maker, which is part of Avantha Group. In a statement, Thapar said he has repaid $563 M (₹4,000 crore) to various lenders since 2015 and allegations of fraud were unfounded.

Source: Live Mint