Latest news with #Gensol
Time of India
6 hours ago
- Business
- Time of India
Asset freeze: NCLAT denies relief to Gensol
NEW DELHI: National Company Law Appellate Tribunal (NCLAT) on Wednesday declined to stay NCLT order directing to freeze assets of Gensol, its promoters, and related entities. It has directed two Gensol Group entities - BluSmart Premium Feet and Matrix Gas and Renewable - to approach Ahmedabad bench of the National Company Law Tribunal NCLT with their plea, where the matter has been listed for hearing on June 12. Passing an order on plea filed by the ministry of corporate affairs, a vacation bench of NCLT had on May 28 directed to freeze assets of Gensol, its promoters, and related entities. agencies Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
a day ago
- Business
- Business Standard
Gensol, BluSmart face insolvency heat as NCLT issues fresh notices
Amid mounting trouble, the National Company Law Tribunal (NCLT) on Tuesday served notices to EV ride-hailing firm BluSmart Mobility Ltd and Gensol Engineering Ltd in connection with three insolvency pleas filed by financial creditors citing outstanding payments. Two of the petitions, filed by Spectrum Trimpex Pvt Ltd and Catalyst Trusteeship Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), allege that BluSmart defaulted on dues of ₹1 crore each, reported Mint. Meanwhile, Equentia Financial Services Pvt Ltd has alleged that Gensol Engineering owes it nearly ₹9 crore. The tribunal ordered the firms to file their responses within seven days. ALSO READ: NCLT allows govt to freeze Gensol Engineering accounts in fraud probe Mounting dues Last month, state-run Indian Renewable Energy Development Agency (Ireda), also filed a petition under Section 7 of the IBC against Gensol Engineering after the company defaulted on a ₹510 crore loan, the company said in a stock exchange filing. Similarly, the Centre filed a petition against Gensol through the Ministry of Corporate Affairs (MCA) citing grave violations of corporate governance norms, diversion of funds, and financial misstatements. Ireda's plea has been listed for June 11, while MCA's matter will be taken up on June 13. ALSO READ: MCA aims to complete Gensol Engineering probe in three to five months Accounts frozen Last week, the tribunal also allowed the Centre to freeze the bank accounts and lockers of Gensol Engineering Ltd, its 10 subsidiaries, and several individuals after multiple investigations revealed major financial irregularities. ALSO READ: Gensol CFO resigns amid regulatory probes, cites data disarray, chaos What the case is about Gensol Engineering came under regulatory scrutiny when market regulator Securities and Exchange Board of India (Sebi) initiated an investigation in June 2024 following complaints of share price manipulation and fund diversion by the company's promoters. The probe followed an interim order issued on April 15, 2025, wherein Sebi barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market and holding key managerial positions within the company. The investigation revealed that Gensol had secured loans totalling approximately ₹977.75 crore from institutions like Ireda and Power Finance Corporation (PFC) for the procurement of electric vehicles. However, only a portion of these funds was utilised for the intended purpose, with the remainder allegedly diverted for personal expenses and unrelated investments, including a luxury apartment in Gurugram.
Time of India
7 days ago
- Business
- Time of India
Gensol Engineering's downfall: 92% stock crash and frozen funds — Here's what happened?
Gensol Engineering 's share price has experienced a significant drop in 2025 since the regulatory turmoil faced by its now-defunct electric ride-hailing venture, BlueSmart--under which the promoters of the firm were accused of misappropriating funds. In fresh woes for the firm, the National Company Law Tribunal (NCLT) in Ahmedabad has frozen the company's bank accounts and lockers, along with those of its promoters and 34 connected entities, due to corporate governance concerns and alleged fund diversion and more, reports Financial Express. Let us dive deeper into what is happening with Gensol- -The action, prompted by regulatory concerns about fund diversion and misconduct, involves multiple agencies and a coordinated effort to investigate the company's financial activities, with a key hearing scheduled for June 3, 2025, to review asset disclosures. -Gensol Engineering's share price has fallen 92 per cent so far in 2025. This decline follows ongoing corporate governance issues. -The National Company Law Tribunal (NCLT), Ahmedabad, has taken action against the company. The NCLT has frozen every bank account and locker linked to Gensol, its promoters, and 34 other connected entities. -Trading in Gensol's and the promoters securities on both BSE and NSE is suspended until further notice, says CNBC TV-18. -The order, granted on May 28, mandated immediate action from the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA). The goal was to secure cash before it could 'vanish into thin air,' as one broker quipped, as per CNBC TV18 report. -Regulators allege a multi-layered scheme of fund diversion, doctored ledgers, and asset sales disguised as routine business moves. The Ministry of Corporate Affairs (MCA) approached the NCLT after preliminary probes hinted at 'grave misconduct' by Gensol's top brass. -The tribunal agreed that waiting might mean watching evidence evaporate, hence the emergency freeze. What will happen to the assets? While the NCLT froze liquid assets, the Debt Recovery Tribunal (DRT) in Delhi targeted physical assets. These include bricks, mortar, and steel, plus a fleet of electric vehicles. The DRT restrained promoters Anmol Singh Jaggi and Puneet Singh Jaggi from selling or shifting any secured assets. A court-appointed officer is preparing to seize hypothecated EVs. Depositories CDSL and NSDL have simultaneously frozen the promoters' demat accounts. This blocks any off-market share transfers, according to a CNBC TV18 report. Investigators say as much as ₹975 crore, originally borrowed for Gensol's EV subsidiary, may have been siphoned off. Gensol; a matter of public interest? Multiple agencies are now working together. These include the SFIO, SEBI, RBI, Income-Tax Department, and MCA. They are calling the case 'a matter of public interest.' All eyes now shift to June 3, 2025, when the matter returns to the regular NCLT bench. By then, every respondent must disclose worldwide assets. These assets include the movable, immovable, tangible, and intangible. Any attempt to mortgage, sell, or gift those assets could be deemed contempt of court.
Time of India
7 days ago
- Business
- Time of India
Gensol Engineering shares in focus as NCLT likely orders asset freeze against promoters
The matter is scheduled to return to the regular NCLT bench on June 3, 2025, where further arguments and responses from the accused will be reviewed. The National Company Law Tribunal has ordered the freezing of assets linked to Gensol Engineering and its affiliates following accusations of financial misconduct, including fund diversion and falsified records. Multiple agencies, including the MCA, SEBI, and RBI, are investigating the matter, with trading of Gensol's securities blocked and asset transactions restricted. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Gensol Engineering are expected to be in focus on Thursday following reports that the National Company Law Tribunal ( NCLT ), Ahmedabad bench, has directed the freezing and attachment of assets linked to 37 individuals and entities associated with Gensol, including its promoters and affiliatesAccording to a report by CNBC TV-18, NCLT initiated this strong action against the company on May action stems from accusations of financial misconduct, including diversion of funds, falsification of financial records, and unauthorised sale of assets. The company is also alleged to have defaulted on substantial loan repayments while continuing to claim Ministry of Corporate Affairs (MCA), the Securities and Exchange Board of India ( SEBI ), the Serious Fraud Investigation Office (SFIO), the Reserve Bank of India (RBI), and the Income Tax Department are among the agencies involved in a coordinated probe into the matter, which regulators have described as one of public CNBC report suggests that the RBI and the Indian Banks' Association (IBA) have been empowered by the NCLT to freeze all bank accounts and lockers held by Gensol, its promoters, and associated all respondents are mandated to disclose their global asset holdings, including movable and immovable a ban has been imposed on any asset transactions by Gensol and its affiliates. This includes restrictions on mortgaging or transferring assets within or outside India. The MCA has also been authorised to work with Indian diplomatic missions overseas to enforce the tribunal's restrictions have also been triggered. According to the CNBC-TV18 report, the MCA has instructed both BSE and NSE to block trading of securities held by Gensol and its parallel, depository institutions such as CDSL and NSDL have been directed to freeze all securities under the accused entities. The Income Tax Department is expected to furnish asset details for the ongoing tribunal has acknowledged preliminary findings indicating the alleged misuse of loans amounting to Rs 975 crore, originally allocated to Gensol's electric vehicle subsidiary. These findings were part of submissions made by the MCA, SEBI, and matter is scheduled to return to the regular NCLT bench on June 3, 2025, where further arguments and responses from the accused will be reviewed. Notices are being issued to all concerned parties ahead of the read: HDFC Bank faces regulatory scrutiny over alleged mis-selling of Credit Suisse bonds in UAE The proceedings mark one of the most high-profile corporate cases of the year and are likely to draw continued regulatory attention and market scrutiny in the days of Gensol Engineering closed 2% lower at Rs 62.98 on the NSE on Wednesday.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The Hindu
28-05-2025
- Business
- The Hindu
Investigation reports, regulatory findings support MCA's claim of systemic fraud in Gensol: NCLT
The vacation bench of National Company Law Tribunal (NCLT), Ahmedabad on Wednesday said investigation reports and regulatory findings prima facie support the Union Ministry of Corporate Affairs (MCA) claims of systemic fraud by promoters of Gensol Engineering Ltd. and related entities and granted the interim reliefs sought by the Ministry. However, the NCLT's order did not specify the reliefs. Media reports said relief included freezing of accounts held by Gensol and its promoters, among others. Gensol Engineering Ltd. along with other respondent companies and associated individuals, have committed grave violations of corporate governance norms, the counsel for the Ministry of Corporate Affairs told NCLT. The funds, raised for specified purposes by the companies, were illicitly transferred to various related parties, in gross violation of the provisions of the Companies Act, 2013. The pattern of illegal fund diversion, asset misstatement, and share price manipulation had caused irreparable harm to public shareholders, creditors, and other stakeholders, he noted. Considering the emergent nature of the case, the substantial public interest involved, and the possibility of further dissipation of evidence or assets, NCLT said it finds it appropriate to grant exemption from advance service of the Company Petition on the Respondents. The Tribunal, based on available records, noted serious allegations of fraudulent conduct, including diversion of company funds by the promoters of Gensol Engineering and related entities, violation of corporate governance norms, manipulation of financial statements, default in loan repayments despite false declarations, and illegal alienation of company assets. The investigation reports and regulatory findings from the Ministry of Corporate Affairs, Securities and Exchange Board of India (SEBI), and Serious Fraud Investigation Office prima facie support the Ministry of Corporate Affairs claims of systemic fraud involving substantial public interest, NCLT said. It listed the matter before regular bench on June 3. Meanwhile in a separate orders, Debts Recovery Tribunal (DRT), Delhi on Wednesday restrained Gensol Engineering Ltd. and its arm Gensol EV Lease Ltd. and its promoters from selling, transferring, alienating, damaging, removing and disposing off or otherwise creating third party interest with regard to immovable & movable secured assets. It also restrained Gensol from entering into settlement with any unsecured creditor without its prior approval. DRT had granted interim reliefs sought by state-run Indian Renewable Energy Development Agency Ltd. (IREDA), which is seeking to recover ₹510 crore from Gensol Engineering and over ₹218 crore from Gensol EV Lease Ltd. It also granted relief sought by Power Finance Corporation, which is seeking to recover over ₹264 crore from Gensol.
