Govt asks SFIO to probe CG Power, Cox & Kings

Source :IANS
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Last Updated: Sat, Nov 9th, 2019, 22:10:00hrs
New Delhi: The Ministry of Corporate Affairs (MCA) has asked the Serious Fraud Investigation Office (SFIO) to probe into fund diversion by CG Power and default on commercial paper (CP) payments by Cox & Kings, now an insolvent travel company, according to sources here on Thursday.

CG Power has been under the MCA scanner over alleged misreporting of numbers. In August, the Ministry had summoned Gautam Thapar, erstwhile Chairman of the company, 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.

The travel company was admitted for insolvency proceedings by the Mumbai Bench of the National Company Law Tribunal (NCLT) in October on a plea by Rattan India Finance.

In June, the company in a regulatory filing informed the exchanges 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.