SKS Power Resolution faces roadblock as HC orders CBI probe
In an order dated March 19, the Allahabad High Court directed an investigation against SKS Power Generation (SKSPGL) and its affiliates for the illicit transfer of funds to two British Overseas Territories - the British Virgin Islands and Bermuda - through fictitious companies.
of SKS Power Generation (Chhattisgarh), currently in administration, is likely to be stalled after the directed the Central Bureau of Investigation to probe charges of misappropriation and other against the company and its linked entities.In an order dated March 19, the Allahabad High Court directed an investigation against SKS Power Generation (SKSPGL) and its affiliates for the illicit transfer of funds to two British Overseas Territories - the British Virgin Islands and Bermuda - through fictitious companies. The order said these funds were allegedly used to purchase SKSPGL's assets in collaboration with bank officials, violating central bank guidelines.
The court has also directed the Serious Fraud Investigation Office (SFIO) to conduct forensic audits.
The division bench comprising Justice Vinod Diwakar and Justice Vivek Kumar Birla passed the order following a petition from a teacher and social worker who alleged fraud being committed by SKS Power Generation and its affiliates.
Torrent Power and Sharda Energy and Power are the two entities in the fray to acquire the 600 MW power generation company. The committee of creditors last year approved a ₹1,800-crore debt resolution plan for Sharda Energy. However, Torrent Power claimed it gave a higher offer and alleged an improper sale process.
The matter is being heard at the National Company Law Appellate Tribunal (NCLAT). and the (SBI) advanced claims of ₹1,890 crore from the power generating company.
Justifying the need to transfer the case to CBI, the court stated that local police was biased and failed to uncover the financial fraud.
The order stated that between 2010-11 and 2017-18, the company availed ₹6,170 crore loans from several lenders, including State Bank of India, L&T Infrastructure and PTC Finance. After it defaulted, SBI seized the assets and sold the company to Agritrade Resources following a bidding process.
"Entwickeln India Energy Pvt Ltd, (a subsidiary of Agritrade) acquired all shares from SBI Trust at a significantly reduced price, with the bank allegedly waiving the interest rate on the loan and even reversing the entire interest amount of ₹820 crore, considering it as deemed capital contribution from the holding company," the order stated.
Source: Stocks-Markets-Economic Times
