The ministry of corporate affairs (MCA) wants fraud-hit CG Power and Industrial Solutions to restate the accounts of the past five financial years, reflecting the actual financial position of the company, including receivables from companies linked to erstwhile promoter Gautam Thapar, sources said.

The new management of the company, soon after the fraud came to light, had on August 30 expressed a desire to restate the financial accounts for the last five years and it will now expedite the process.

Sources said the ministry had filed a petition before the Mumbai-bench of the National Company Law Tribunal (NCLT), seeking permission to re-open the books of account and recast the financial statements of CG Power and its subsidiary companies for the past five financial years beginning 2014-15.

It wants chartered accountants to re-open the books of account and recast the financial statements of the company and its subsidiary firms.

The corporate affairs ministry had previously asked its Serious Fraud Investigation Office to probe the affairs of the company along with 15 other firms, including two subsidiaries — CG Power Solutions and CG International BV.

CG Power, which has ousted its chairman over allegations of financial irregularities, had plans to re-examine its accounts over the past financial years to ascertain whether similar transactions may have escaped detection after an internal probe into the current performance revealed nine such deals.

A recent investigation by the company revealed that the nine wrongful transactions caused the company to lose around Rs 3,300 crore.

It has asked companies linked to promoter Gautam Thapar, among others, to return the money and has initiated the second phase of the probe to fix the responsibility for the alleged fraudulent transactions.

CG Power had in August stated that an investigation instituted by its board had found major governance and financial lapses, including some assets being provided as collateral and the money from the loans siphoned off by “identified company personnel, both current and past, including certain non-executive directors”.