Avantha Group’s Gautam Thapar has moved the Securities Appellate Tribunal (SAT) against the order passed by the Securities and Exchange Board of India (Sebi), which barred him from the capital market for his alleged involvement in the accounting fraud at CG Power and Industrial Solutions. The tribunal on Monday adjourned a hearing the matter while directing the market regulator to provide Thapar’s counsel the investigation report based on which it passed the order dated September 18. Sebi has been given two days to submit its reply. Meanwhile, CG Power had submitted a plea to be a party to the case. SAT has ordered Thapar's counsel to give a petition copy to counsel appearing for CG Power. SAT may once again take up the matter on Thursday. Last week, Sebi had barred Thapar and three other former officials of CG Power for a number of alleged irregularities, including diversion of money.
Sebi had said it was passing an ex-parte ad-interim order to “protect the integrity of the securities market.” Sebi’s order was passed nearly a month after the CG Power board said the company had been hit by an accounting scandal and the liabilities of the group had been understated by over Rs 1,600 crore for 2017-18. The regulator had passed the order based on preliminary investigation report submitted by CG Power. Sebi has ordered a more detailed forensic audit to bring out the “complete picture and the extent of the misappropriation”.