Directorate of Enforcement (ED) has provisionally attached immovable properties of Gautam Thapar's Avantha Group. Valued at Rs 678.48 crore, the properties are in the form of land located in Haryana, Maharashtra and Uttarakhand.
On August 19, 2019, CG Power and Industrial Solutions Ltd had disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to Bombay Stock Exchange and National Stock Exchange regarding findings which had potential implications on the financial position of the company.
The disclosure made by CG Power and Industrial Solutions Ltd revealed that assets and liabilities of the company have been understated considerably; that advances to related parties and unrelated parties have also been understated; additionally, certain assets' company have been provided as collateral, the company was made a co-borrower and/or guarantor for enabling financing of loans which were immediately routed out of the company without due authorisation.
The notice of the disclosure was taken by the lender banks of the company and on the basis of a complaint made by State Bank of India, CBI, New Delhi registered an FIR dated 22.06.2021 under the various sections of IPC and Prevention of Corruption Act against CG Power and Industrial Solution Ltd: Gautam Thapar, along with K. N. Neelkanth, Madhav Acharya, B. Hariharan, Omakar Goswami and unknown public servant(s) and private person(s) in perpetuating a bank fraud on consortium of banks to the tune of Rs 2,435 crore.
On the basis of the above FIR, ED initiated the investigation under PMLA, and during the course of the investigation, earlier two Provisional Attachment Orders were issued wherein the properties of Rs 14.43 crore were attached.
One Key Managerial Personnel of the company, namely Madhav Acharya, was also arrested in January 2024, and a prosecution complaint has been filed against him and other persons found to have been involved in the offence of money laundering.
Further investigation conducted by ED revealed that Rs 1307.06 crore have been diverted to Avantha Group companies by availing loans and out of its funds. Most of the funds have been paid without the due authorisation of the board and the funds ultimately paid to Avantha Group companies remained still outstanding on Avantha Group. Therefore, the properties of companies of Avantha Group worth Rs 678.48 Crore have been attached.
Further investigation is under way.
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