SEBI bans Guatam Thapar for 5 years in the CG Power case
The Capital market regulator Securities Exchange Board of India (SEBI) has imposed a five year ban and a fine of Rs 10 crore on Gautam Thapar, chairman of Avantha Group for diverting funds from CG Power and Industrial Solutions, where he was the chairman.
It means that Guatam Thapar cannot raise capital from the market for the next five years for any business.
SEBI also barred the company's former CFO V R Venkatesh and two ex-directors Madhav Acharya and B Hariharan for periods varying from 6 months to 3 years.
Background to the case
In 2019, the CG Power company said that there has been accounting fraud in the company and its liabilities were understated to the tune of over Rs 1600 crore.
After the examination of the company’s book, SEBI found that several irregularities and fraudulent transactions were carried out by key officials of the company including Thapar. Funds were being diverted from the CG Power Company to another Thapar company, Avantha Group.
Securities Exchange Board of India Chairperson: Madhabi Puri Buch
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