The Mumbai bench of the National Company Law Tribunal (NCLT) on November 25 heard a petition from the Ministry of Corporate Affairs (MCA) to re-audit and recast the accounts of CG Power and Industrial Solutions for the last five years.
NCLT has directed MCA to send notices and get clearance from the Securities and Exchange Board of India (SEBI) and the Income Tax Department to undertake the recast.
MCA legal Director Sanjay Shourie and Western Regional Director Manmohan Juneja presented the case at Mumbai NCLT court on November 25.
MCA had earlier moved an application under Section 130 of the Companies Act to recast these accounts for the period FY14-15 to FY18-19.
The company's former chairman Gautam Thapar and others sought time to file their reply in the matter, which was allowed by the tribunal.
MCA had recently ordered a Serious Fraud Investigation Office (SFIO) probe on the company. A SEBI-ordered forensic audit of the company is also already underway. SEBI had earlier passed an order banning Gautam Thapar from participating in any transactions in the capital market. Currently, private equity players who had converted their debt into equity are running the management.
The MCA Western Regional Director had identified many instances of siphoning off of funds in related companies worth more than Rs 3,300 crore.
MCA had started investigations into the financials of the company in 2017 after abrupt resignation by an auditor due to non-co-operation from the management.
The former auditor is also under the scanner of SFIO.NCLT Mumbai bench will next hear the matter on December 16.