A petition of power generation company SKS Power Generation Company landed in the Delhi High Court, which sought the direction for a SIT investigation to be conducted by CBI to investigate into illegality and offence committed by the ex-management, ex-promoters and ex-employees of the company.
The Delhi High Court Bench, presided over by Justice Suresh Kumar Kait on May 24, ordered that the Ministry of Home Affairs should take the decision on the representation made by the petitioner in this regard within four weeks.
The Bench also made it clear that if the Ministry of Home Affair is of the opinion that the representation is to be decided by the Ministry of Company Affairs, the same shall be sent to the said Company within two weeks from the receipt of the order and the Ministry of Company Affairs shall take a decision within four weeks thereafter and decision of the same shall be communicated to the petitioner in writing within one week thereafter.
Thereafter, the Court disposed of the matter and made remark that copy of abovementioned order shall be sent to the office of Home Minister for necessary compliance.
In June 2018, the company was unable to pay its debts to its lenders including public sector banks like SBI who initiated action under the RBI’s Prudential Framework for Resolution of Stressed Assets. The Petitioner was subsequently acquired by Agritrade Resources Ltd. which is a Singapore-based company.
It was alleged by current Director of the power producing company Abhijeet Kar that former management of Power-Producing Company was consisted of promoter Anil Mahabir Gupta, who was engaged in various fraudulent activities, including siphoning of funds of lenders to various related parties. The true extent of the liabilities of the petitioner company was not disclosed to Agritrade Resources at the time of acquisition by the latter and it was only after the new management took over that the various illegalities committed by the ex-management came to light.
The Counsel of the Power- Producing Company has produced before the Bench, the forensic audit report and other documents that showed that Mr Gupta and other members of the ex-management are prima facie liable for committing fraud on the company by siphoning off funds from the company to third parties, including related parties, in order to personally enrich themselves.