ED extend directions for freezing bank account of CG Power
On October 17, 2024, the ED had initially frozen the account. As per the ED Orders, the opened account at the SBI Bank (CAG Branch, Chennai) on September 25, 2024, was formed particularly to accept USD 751,358.43 (equivalent to Rs. 6,31,31,014 at the time of conversion).
The Adjudicating Authority in New Delhi has extended the freeze on a new bank account opened by the CG Power and Industrial Solutions Ltd. This came amid an application submitted by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act (PMLA), 2002.
On October 17, 2024, the ED had initially frozen the account. As per the ED Orders, the opened account at the SBI Bank (CAG Branch, Chennai) on September 25, 2024, was formed particularly to accept USD 751,358.43 (equivalent to Rs. 6,31,31,014 at the time of conversion).
After this, the ED submitted an Original Application (OA No. 1376 of 2024) to the Adjudicating Authority asking for the retention of the frozen money for more inquiry into claimed PMLA infractions by the erstwhile promoter group and management of the firm.
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The Adjudicating Authority granted the application on March 25, 2025, maintaining the freeze. But, CG Power has said that this ruling does not affect its financial situation since the bank account was created only to collect the indicated monies.
This comes after CG Power's previous announcement on October 18, 2024, about the first freeze order. By notifying the stock exchanges, the company has followed Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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