2. During the pendency of present petition, respondent no.3/SBI had brought on record the declaration as fraud dated 29.05.2020 under Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) Directions 2016 [hereafter ‘Master Directions on Frauds’] in respect of the account of CG Power and Industrial Solutions Ltd. [hereafter ‘CG Power’]. Petitioners sought to insert the prayer seeking quashing and setting aside of the said declaration of the account of CG Power to the extent it concerns the transactions undertaken during the period when petitioners were promoters and directors of CG Power.

3. The case set out in the present petition is that in the year 2017, KKR Consortium [hereafter ‘KKR’] lent an amount of Rs.900 crores to petitioner no.1 and the same was secured by a pledge of 22% shares of CG Power where petitioner no.1 had 34% of shareholding.

4. On 08.03.2019, KKR invoked the pledge of about 10.8% shares of CG Power, thereby acquiring the shares of CG Power. The balance 10.8% shares of CG Power were invoked on 20.03.2019.

5. Simultaneously, on 08.03.2019 itself, an ‘Operations Committee’ was formed consisting of Mr. Narayan Seshadri (also a