New Delhi, Nov 7 (SocialNews.XYZ) 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.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz