In a March 19 order, the Allahabad High Court directed an investigation against SKS Power Generation (SKSPGL) and its subsidiaries for illicit transfer of funds to two British Overseas Territories (BVI and Bermuda) through fictitious companies. The warrant said these funds were allegedly used to purchase SKSPGLThe assets of in collaboration with bank officials, violating the central bank's guidelines.
The court has also ordered the Serious Fraud Investigation Office (SFIO) drive forensic audits.
The division bench comprising Justice Vinod Diwakar and Justice Vivek Kumar Birla passed the order following a petition by a teacher and a social worker alleging fraud committed by SKS Power Generation and its affiliates.
torrent power and Sharda Energy and Power are the two entities in the running to acquire the 600 MW generator. Last year, the committee of creditors approved a Rs 1,800-crore debt resolution plan for Sharda Energy. However, Torrent Power claimed it made a higher offer and alleged an inadequate sales process.
The matter is being heard in the National Company Law Appellate Tribunal (NCLAT). Bank of Baroda and the State Bank of India (SBI) filed claims for Rs 1,890 crore from the power generating company, justifying the need to transfer the case to IWC, the court declared that the local police were biased and did not uncover the financial fraud. The order stated that between 2010-11 and 2017-18, the company took loans of Rs 6,170 crore from various 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.
โEntwickeln India Energy Pvt Ltd, (a subsidiary of Agritrade) acquired all the shares of SBI Trust at a significantly reduced price, and the bank allegedly waived the interest rate on the loan and even reversed the entire interest amount of โน820 million of rupees, considering it as deemed capital contribution of the holding company,โ the order reads.
Entwickeln issued mandatory convertible debentures to SKS Power Generation at an undervalued price and consequently, SKS Power became the holding company of Entwickeln India Energy, which allegedly resulted in wrongful loss to the bank amounting to Rs 5,717 crore, according to the order.
The order said 46 shell companies were โallegedly formed at the behest of directors of SKS group entitiesโ, engaging in round-tripping funds through bogus stock transactions, resulting in a massive profit of billions of dollars. rupees for SKS Power Generation group companies.
