MCA Asks SFIO To Probe Fund Diversion By CG Power And Default On Commercial Paper Payments By Cox & Kings
[ By Bobby Anthony ]The Union Ministry of Corporate Affairs (MCA) has asked the Serious Fraud Investigation Office (SFIO) to probe fund diversion by CG Power and default on commercial paper payments by Cox & Kings, which is now an insolvent travel company, according to sources.CG Power has been under the MCA scanner over alleged misreporting of numbers. In August, the MCA had summoned...
The Union Ministry of Corporate Affairs (MCA) has asked the Serious Fraud Investigation Office (SFIO) to probe fund diversion by CG Power and default on commercial paper payments by Cox & Kings, which is now an insolvent travel company, according to sources.
CG Power has been under the MCA scanner over alleged misreporting of numbers. In August, the MCA had summoned Gautam Thapar, the erstwhile Chairman of CG Power, along with other executives and the company's auditor.
The SFIO probe has been ordered on the MCA Western Regional Director's recommendation, which in its report last month indicated instances of diversion of funds by CG Power.
Similarly, the MCA Western Regional Director had submitted to the ministry in October a probe report on Cox & Kings. The probe had been initiated after Cox & Kings defaulted on commercial paper payments.
Incidentally, Cox & Kings was admitted for insolvency proceedings by the Mumbai Bench of the National Company Law Tribunal (NCLT) in October after a plea by Rattan India Finance.
In June, Cox & Kings informed the exchanges in a regulatory filing that it had not paid Rs 150 crore out of Rs 200 crore worth of loans. It further defaulted on a Rs 30-crore loan in September.