NCLT to hear MCA plea in Crompton Power case on Jan 23

The National Company Law Tribunal (NCLT) will hear the Ministry of Corporate Affair's (MCA) plea for opening the books of fraud-hit CG Power on January 23.

Hearing the issue on Thursday, the NCLT reiterated that the investigation report of Vaish Associates couldn't be relied upon as it was commissioned by the company and thus couldn't be termed independent. A government-commissioned independent report was required, it said.

The Mumbai Bench of the NCLT will give its final verdict on reopening of accounts after January 23, when it will hear the MCA's arguments. The MCA's counsel was not present at Thursday's hearing.

The MCA had approached the NCLT in November seeking to reopen the financial statements of CG Power Industrial Solutions for 2015-19 on the basis of the company's announcement on the exchange about financial irregularities.

The company in August disclosed the findings of risk and audit committee (RAC), which revealed that the firm and the group together could have under-reported Rs 3,600 crore  liabilities in financial years 2017 and 2018.

Erstwhile CG Power Chairman Gautam Thapar, CFO V.R. Venkatesh and others were removed from the company board in August over alleged under-reporting and siphoning of money to Thapar's other firms. They were eventually barred from the stock markets and Thapar was also summoned by the MCA.

Thapar, however, said the transactions took place with due approval of the board.