  We study chiral induced gravity in the light-cone gauge and show that the
theory is consistent for a particular choice of chiralities. The corresponding
Kac--Moody central charge has no forbidden region of complex values.
Generalized analysis of the critical exponents is given and their relation to
the $SL(2,R)$ vacuum states is elucidated. All the parameters containing
information about the theory can be traced back to the characteristics of the
group of residual symmetry in the light--cone gauge.
