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Time of India
12-05-2025
- Business
- Time of India
Gensol founders Anmol Singh Jaggi and Puneet Singh Jaggi resign
Gensol Engineering Limited Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi on Monday stepped down from their respective positions, citing compliance with the Securities and Exchange Board of India's (SEBI) Interim Order. The resignations are effective at the close of business hours on May 12. Sebi, had, last month barred the Jaggi brothers from accessing the securities markets until further notice amid accusations of siphoning off loan funds from their publicly listed company Gensol Engineering for personal use, raising concerns over corporate governance and financial misconduct. The brothers had launched two prominent ventures: Gensol Engineering and BluSmart Mobility , which focussed on clean energy and electric mobility. 'I am hereby resigning from the post of Managing Director of Gensol Engineering Limited with effect from the close of business hours on May 12, 2025. Further, I declare that I am resigning due to the direction given under SEBI Interim Order dated April 15, 2025,' Anmol Singh Jaggi wrote in his resignation letter addressed to the Board. Notably, the resignation also follows Securities Appellate Tribunal's (SAT) refusal to stay the above said Sebi order, last week. What is the Gensol saga? SEBI's interim order accuses Gensol of fraudulent practices and misuse of funds. A key allegation centers around the misuse of a Rs 978 crore term loan jointly sanctioned by Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). The funds were intended for purchasing 6,400 electric vehicles to be leased to BluSmart Mobility, an affiliate of Gensol. However, only 4,700 vehicles were reportedly procured at a cost of Rs 567 crore, leaving Rs 262 crore unaccounted for. The regulator has alleged that the unutilized funds were diverted to unrelated transactions, including luxury real estate purchases and payments made to entities associated with the promoters. Gensol's stock has plunged 59% over the past month and 18.5% in the last week alone. SAT proceedings and company's response During the SAT hearing, Gensol argued that the SEBI order was issued without a hearing and described the resulting impact as a 'tremendous loss of business.' The company said the freeze on its demat account and the ongoing forensic audit had jeopardized its operations, with risks of contract cancellations and potential loan defaults. SEBI countered that Gensol had forged repayment certificates on the letterheads of state-run banks to mislead regulators, lenders, and investors. These claims were supported by Ireda and PFC, which have separately lodged complaints with the Economic Offences Wing, denying they had issued any such certificates. The Ministry of Corporate Affairs has also opened an investigation into Gensol and BluSmart Mobility. As part of the regulatory clampdown, SEBI has barred promoter Anmol Singh Jaggi from holding executive positions in any listed entity pending the outcome of the investigation. Gensol was directed by SAT to submit its response to SEBI within two weeks, while SEBI has been asked to issue a final order within four weeks after a hearing.
Time of India
12-05-2025
- Business
- Time of India
Gensol founders Anmol Singh Jaggi and Puneet Singh Jaggi resign
Gensol Engineering Limited Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi on Monday stepped down from their respective positions, citing compliance with the Securities and Exchange Board of India's (SEBI) Interim Order. The resignations are effective at the close of business hours on May 12. Sebi, had, last month barred the Jaggi brothers from accessing the securities markets until further notice amid accusations of siphoning off loan funds from their publicly listed company Gensol Engineering for personal use, raising concerns over corporate governance and financial misconduct. The brothers had launched two prominent ventures: Gensol Engineering and BluSmart Mobility , which focussed on clean energy and electric mobility. 'I am hereby resigning from the post of Managing Director of Gensol Engineering Limited with effect from the close of business hours on May 12, 2025. Further, I declare that I am resigning due to the direction given under SEBI Interim Order dated April 15, 2025,' Anmol Singh Jaggi wrote in his resignation letter addressed to the Board. Notably, the resignation also follows Securities Appellate Tribunal's (SAT) refusal to stay the above said Sebi order, last week. What is the Gensol saga? SEBI's interim order accuses Gensol of fraudulent practices and misuse of funds. A key allegation centers around the misuse of a Rs 978 crore term loan jointly sanctioned by Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). The funds were intended for purchasing 6,400 electric vehicles to be leased to BluSmart Mobility, an affiliate of Gensol. However, only 4,700 vehicles were reportedly procured at a cost of Rs 567 crore, leaving Rs 262 crore unaccounted for. The regulator has alleged that the unutilized funds were diverted to unrelated transactions, including luxury real estate purchases and payments made to entities associated with the promoters. Gensol's stock has plunged 59% over the past month and 18.5% in the last week alone. SAT proceedings and company's response During the SAT hearing, Gensol argued that the SEBI order was issued without a hearing and described the resulting impact as a 'tremendous loss of business.' The company said the freeze on its demat account and the ongoing forensic audit had jeopardized its operations, with risks of contract cancellations and potential loan defaults. SEBI countered that Gensol had forged repayment certificates on the letterheads of state-run banks to mislead regulators, lenders, and investors. These claims were supported by Ireda and PFC, which have separately lodged complaints with the Economic Offences Wing, denying they had issued any such certificates. The Ministry of Corporate Affairs has also opened an investigation into Gensol and BluSmart Mobility. As part of the regulatory clampdown, SEBI has barred promoter Anmol Singh Jaggi from holding executive positions in any listed entity pending the outcome of the investigation. Gensol was directed by SAT to submit its response to SEBI within two weeks, while SEBI has been asked to issue a final order within four weeks after a hearing.
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Business Standard
06-05-2025
- Business
- Business Standard
Corp affairs ministry orders probe against Gensol Engineering, BluSmart
The corporate affairs ministry has ordered a probe into the affairs of crisis-hit Gensol Engineering and BluSmart Mobility for alleged violations of companies law, according to officials. Gensol Engineering came under the regulatory scanner for alleged fund diversions and corporate governance lapses after Sebi, in April, passed an order barring the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. BluSmart Mobility, which offers ride-hailing services, is promoted by Anmol Singh Jaggi. The officials on Tuesday said the ministry ordered an investigation against the companies last week under Section 210 of the Companies Act, 2013. Under Section 210, the ministry has powers to order a probe into the affairs of a company on various grounds, including in public interest. Earlier, the ministry had said it would take necessary action in the matter after examining the Sebi order. The order by the Securities and Exchange Board of India (Sebi), on April 15, came against the Gensol promoters amid accusations of siphoning off loan funds from their publicly-listed company Gensol Engineering for personal use, raising concerns over corporate governance and financial misconduct. Meanwhile, the Institute of Chartered Accountants of India (ICAI) is likely to complete the review of the financial statements of Gensol Engineering Ltd and BluSmart Mobility in six months. ICAI's Financial Reporting Review Board (FRRB) is reviewing the financial statements of the two companies for the financial year 2023-24. FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others. Also, FRRB assesses compliance with various guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI). Gensol is also being probed by the Enforcement Directorate (ED).
The Hindu
06-05-2025
- Business
- The Hindu
MCA starts probe into Gensol, BluSmart Mobility
The Ministry of Corporate Affairs (MCA) has started an investigation into the functioning of both BluSmart Mobility and Gensol Engineering, sources aware of the development told The Hindu. The investigation is being undertaken under the powers bestowed on the Union government under Section 210 of the Companies Act 2013. 'The Ministry of Corporate Affairs last week launched a formal investigation into the affairs of Blusmart and Gensol,' one of the sources in the Ministry said. 'It is under Section 210 of the Companies Act. A senior official from the Ministry will be conducting the investigation.' Section 210 empowers the Union government to investigate the affairs of a company if it has received a report of a registrar or inspector after an examination of the company's books of account, an intimation of a special resolution passed by a company that the affairs of the company ought to be investigated, or if it is in the public interest to do so. It has been learnt that the current investigation into Blusmart and Gensol has been undertaken under the third provision — of public interest — but that the books of account of the companies would also be scrutinised as part of the investigation. Gensol Engineering has been in the spotlight since April, when the markets regulator Securities and Exchange Board of India (SEBI) barred the company's promoters — brothers Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities market for alleged fund diversions and corporate governance lapses. BluSmart Mobility, an e-cab service, is promoted by Mr. Anmol Singh Jaggi. It has suspended operations since the SEBI order. The official in the Corporate Affairs Ministry did not specify a timeline for the investigation.
The Hindu
06-05-2025
- Business
- The Hindu
Corporate Affairs Ministry orders probe against Gensol Engineering, BluSmart
The Corporate Affairs Ministry has ordered a probe into the affairs of crisis-hit Gensol Engineering and BluSmart Mobility for alleged violations of companies law, according to officials. Gensol Engineering came under the regulatory scanner for alleged fund diversions and corporate governance lapses after SEBI, in April, passed an order barring the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. BluSmart Mobility, which offers ride-hailing services, is promoted by Anmol Singh Jaggi. The officials on Tuesday said the ministry ordered an investigation against the companies last week under Section 210 of the Companies Act, 2013. Under Section 210, the ministry has powers to order a probe into the affairs of a company on various grounds, including in public interest. Earlier, the Ministry had said it would take necessary action in the matter after examining the Sebi order. The order by the Securities and Exchange Board of India (SEBI), on April 15, came against the Gensol promoters amid accusations of siphoning off loan funds from their publicly-listed company Gensol Engineering for personal use, raising concerns over corporate governance and financial misconduct. Meanwhile, the Institute of Chartered Accountants of India (ICAI) is likely to complete the review of the financial statements of Gensol Engineering Ltd and BluSmart Mobility in six months. ICAI's Financial Reporting Review Board (FRRB) is reviewing the financial statements of the two companies for the financial year 2023-24. FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others. Also, FRRB assesses compliance with various guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI). Gensol is also being probed by the Enforcement Directorate (ED).
