CG Power shares slip 5 pc as SFIO begins probe

Shares of CG Power and Industrial Solutions Ltd on Wednesday declined around 5 per cent as the Serious Fraud Investigation Office (SFIO) started probe into the alleged irregularities in the firm and its 15 group companies. The scrip settled 4.96 per cent lower at Rs 11.11 on the BSE. On the NSE, the shares closed the counter 4.7 per cent lower at Rs 11.15.

"The company has received a letter...from the office of the Joint Director (Investigation), SFIO, Ministry of Corporate Affairs...informing that the Central Government...has ordered an investigation by the SFIO into the affairs of the company and its 15 related/group companies (not having been specifically identified in the said letter)...The said SFIO Investigation has been initiated," the firm said in a regulatory filing. Earlier, sources had said that the Ministry of Corporate Affairs (MCA) has filed a petition before the Mumbai-bench of the National Company Law Tribunal seeking permission to re-open the books of account and recast the financial statements of CG Power and its subsidiary companies for the past five financial years beginning 2014-15.

The MCA had previously asked SFIO to probe the affairs of the company along with 15 other firms, including two subsidiaries CG Power Solutions Ltd and CG International BV.