The NCLT allowed the Ministry of Corporate Affairs (MCA) to reopen and recast the financial accounts of CG Power and Industrial Solutions Ltd due to the charges made on chairman, Gautam Thapar. MCA had sought restatement of the financial accounts of the company, suspecting fraud, as the financials did not reflect the true picture of its accounts. This is only the second time that MCA will reopen and recast the financial statements of a company. Under the Companies Act, an entity can reopen accounts only in two situations; when the board believes there is negligence in preparing the accounts, or a fraud has been committed, and, two, when the government believes the statement of accounts is incorrect. The MCA said the company understated its liabilities for financial years 2017 and 2018 at Rs.402 crore and Rs.602 crore, respectively, as against the real liability of Rs.1,053 crore and Rs.1,608 crore, respectively. CG Power’s net worth was also understated. The outcome remains to be seen.