CBI Files Case Against Gautam Thapar and Others in Rs 2,435 Bank Fraud Case
The Central Bureau of Investigation (CBI) has now registered a new case against Gautam Thapar and his company CG Power and Industrial Solutions for alleged bank fraud of Rs 2,435 crore. Last week, the CBI, which is investigating a default case payment against Avantha Group promoter Gautam Thapar and others, carried out raids in several locations in Mumbai, Delhi and Gurugram.
The new First Information Report (FIR) was filed by the State Bank of India (SBI) against CG Power & Industrial Solutions and others including KN Neelkanth, then Managing Director (CEO) and Managing Director (MD) of CG Power and Industrial Solutions, Madhav Acharya, then executive director (ED) and chief financial officer (CFO), B Hariharan, then director, Omkar Goswami, then non-executive director, Venkatesh Rammoorthy, then chief financial officer and unknown officials and other unknowns.
SBI, which had a 12.81% exposure to the default amount of Rs 2,435 crore, filed the case on behalf of the consortium of 11 other lending banks, including Yes Bank, which has the second highest exposure in 11.75%.
This is a new case against Mr. Thapar while another separate case has already been filed against him regarding the Rs466 million fraud case in Yes Bank.
The company, which has industrial facilities and electrical systems in India, Indonesia and Hungary, has been a client of SBI since 1988.
On August 19, 2019, in a regulatory filing, said his liabilities, advances to related parties and net worth had been understated.
The company’s board of directors also said the company’s assets had been provided as collateral to enable “seemingly unrelated third parties” to obtain loans that were immediately transferred out of the company.
Following the disclosures, the board of directors, by majority decision, removed Mr. Thapar as chairman and Venkatesh VR as chief financial officer on August 29, 2019, according to the FIR.
The banks also sanctioned a forensic audit of the company on September 27, 2019, which showed that company funds had been transferred to group companies promoted by Mr Thapar through a series of transfers to various companies.
The forensic audit carried out by the consortium revealed several anomalies forcing the lending banks to qualify the account as fraud.
On September 7, 2020, watch notices were issued against Mr. Thapar, Mr. Neelkanth and Mr. Acharya.
SBI alleged in its FIR that between 2015 and 2019, Mr. Thapar, his company CG Power and other defendants deceived SBI and other consortium member banks by embezzling bank funds, faking transactions with parties related, by borrowing funds from the bank by false declaration. , falsify or fabricate books of accounts, entries, vouchers and financial statements by providing false, incorrect or misleading information to secure the credit they divert by diverting it to other companies.