BSE appoints MSA Probe Consulting as forensic auditor for CGPIL probe

CG Power and Industrial Solutions (CGPIL) on Wednesday said Bombay Stock Exchange has appointed MSA Probe Consulting as the forensic auditors in compliance with Securities and Exchange Board of India (Sebi) order of September 17, to carry out detailed forensic audit of CGPIL books for the period 2015-16 onwards, following the discovery of fraudulent transactions in the account books in August.

“The said forensic audit has commenced on October 15,” the company said in a statement to exchanges.

On September 17, Sebi directed BSE to appoint forensic auditors to audit the books of accounts of CG Power from the financial year 2015-16 onwards till date, to examine manipulation of books of accounts, misrepresentation including financial and business operations and wrongful diversion of company funds.

The audit firm will have to submit the report to Sebi within six months from the date of the order. “..it is noted that the funds diverted from CG Power were fraudulently transferred to its promoter company i.e. Avantha Holdings and entities related or connected with the company, viz. Avantha International, Acton, Ballarpur International,

Mirabelle and Solaris, without the knowledge of the company and without any approval from its board,” Sebi whole-time member G Mahalingam had said in the order.

In the same order Sebi also barred CG Power’s ex-chairman Gautam Thapar, former directors Madhav Acharya and B Hariharan, and chief financial officer VR Venkatesh from accessing the securities market alleging fraudulent transfer of funds from the company. It further restrained them from being associated with any market intermediary or listed companies.

Securities and Exchange Board of India ( SEBI )