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CG Power faces an extended freeze on its bank account following ED’s order under PMLA. The company asserts no financial impact, as the account was solely created to receive specific funds. CG Power share price remains unaffected.
CG Power and Industrial Solutions Limited announced that the Adjudicating Authority in New Delhi has extended the freeze on a bank account opened by the company at the State Bank of India (CAG Branch, Chennai). The freeze follows an application filed by the Directorate of Enforcement (ED) under the Prevention of Money Laundering Act (PMLA), 2002. Initially, the ED froze the account on October 17, 2024, after it was created on September 25, 2024, specifically to receive USD 751,358.43 (approximately Rs. 6.31 crore). The ED sought to retain the frozen funds to continue the investigation related to alleged PMLA violations by the company’s former promoter group and management.
Despite the extension of the freeze, CG Power has reassured stakeholders that the financial position of the company remains unaffected. The company stated that the account was opened solely for receiving the specified funds and does not play a role in regular business operations. CG Power share price remained stable despite the announcement, reflecting the company's claim of no financial impact.
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Bank Account Freeze Extended: ED order extends the freeze on CG Power’s bank account.
Reason for Freeze: Account opened to receive USD 751,358.43 (Rs. 6.31 crore) amid PMLA probe.
Financial Impact: CG Power claims no adverse financial impact from the freeze.
Investigation Status: ED continues probing alleged PMLA violations by former promoters.
Regulatory Compliance: CG Power adhered to SEBI's disclosure regulations by informing the stock exchanges.
Market Response: CG Power share price remains stable post-announcement.
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Parameter | Details |
Bank | State Bank of India (CAG Branch, Chennai) |
Account Opening Date | 25 September 2024 |
Freezing Date | 17 October 2024 |
Amount Held | USD 751,358.43 (Rs. 6.31 crore) |
ED Application Date | 25 March 2025 |
Freezing Extension Approval Date | 25 March 2025 |
Despite the extended freeze on the bank account, CG Power share price remained unaffected in the market. Investors appear to have maintained confidence as the company clarified that the frozen account does not influence its financial stability. CG Power's compliance with SEBI regulations by informing stock exchanges on time also contributed to maintaining positive sentiment among stakeholders.
The extended freeze on CG Power’s bank account is part of an ongoing PMLA investigation involving the company’s former promoter group and management. As the company asserts no financial impact from the order, CG Power share price remains stable, reflecting market confidence in the company’s operational strength and compliance.
Also read: Punjab & Sind Bank Closes QIP, Shares Surge Over 13% on Positive Sentiment
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