Moneycontrol Be a Pro
Get App
Last Updated : Sep 07, 2019 03:20 PM IST | Source: Moneycontrol.com

CG Power's former CFO detained at Mumbai airport, prevented from leaving country

Venkatesh who was sacked recently by the company citing misconduct and breach of trust

Tarun Sharma @talktotarun
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

VR Venkatesh, the Chief Financial Officer of CG Power who was sacked by the company citing misconduct and breach of trust, was on September 6 prevented from leaving the country by officials at Mumbai International Airport.

A Lookout Notice was issued against Venkatesh by the Ministry of External Affairs (MEA) at the behest of the Ministry of Corporate Affairs (MCA).

Venkatesh was detained by authorities at night on September 6 at the Airport, as he was allegedly trying to flee the country. He is said to be holding a Belgium passport.

Close

Officials have held him for more than 11 hours, as the MCA took a statement at the Airport during deposition.

Venkatesh was under MCA scanner after an internal investigation launched by the board of CG Power unearthed several multi-crore transactions that pointed at alleged fund diversion, mismanagement, unauthorised advances and corporate guarantees to promoter affiliated companies and connected parties.

Earlier, the board had sacked Gautam Thapar, Chairman and promoter of the company.

A source close to the development told Moneycontrol that Venkatesh who was grilled at the MCA office till the evening of September 6, has not said anything about his travel plan to Belgium.

The source also said that he was not forthcoming with answers to their questions on the fraud allegation.

The company, which had restated its FY18 numbers, saw its consolidated receivables balances from various subsidiaries, promoter affiliated companies and connected parties jump from Rs 131 crore to Rs 2,657 crore. Advances to related and unrelated parties of the company may have been potentially understated by Rs 1,990.36 crore, as on March 31, 2018.

Thapar denied the allegations of misappropriation of funds.

 

With inputs from Moneycontrol's Viswanath Pilla.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 7, 2019 03:20 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant