Latest news with #PuneetSinghJaggi
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Business Standard
2 days 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.
Mint
2 days ago
- Business
- Mint
NCLT issues notices to BluSmart Mobility and Gensol on three fresh insolvency pleas
The National Company Law Tribunal (NCLT) on Tuesday issued notices to electric vehicle (EV) ride-hailing startup BluSmart Mobility Ltd and Gensol Engineering Ltd on three new insolvency petitions by financial creditors over alleged unpaid dues. Spectrum Trimpex Pvt. Ltd and Catalyst Trusteeship Ltd moved the tribunal under Section 7 of the Insolvency and Bankruptcy Code (IBC) against BluSmart over unpaid dues worth ₹ 1 crore each. Equentia Financial Services Pvt. Ltd claimed that Gensol Engineering owed it around ₹ 9 crore. The NCLT's Ahmedabad bench has directed both companies to file their responses within seven days. Separately, the tribunal adjourned the hearing on an earlier insolvency plea filed by the Indian Renewable Energy Development Agency (IREDA) against Gensol, involving a ₹ 510 crore loan default. The IREDA plea is now scheduled to be heard on 11 June. During previous proceedings, IREDA described Gensol as 'headless' and urged the tribunal to immediately appoint an interim resolution professional to protect the company's assets, alleging that its directors had fled following an order by the Securities and Exchange Board of India (Sebi). The tribunal also ordered the freezing and attachment of all bank accounts and lockers belonging to Gensol Engineering Ltd and its associated entities, based on findings by the ministry of corporate affairs (MCA), Sebi, and the Serious Fraud Investigation Office (SFIO). The MCA had sought urgent action, which the tribunal approved. On 28 May, the Debt Recovery Tribunal (DRT) restrained Gensol Engineering and its subsidiary, Gensol EV Lease Ltd, from selling, transferring, or creating third-party rights over their immovable and movable secured assets. This followed petitions by state-run lenders IREDA and Power Finance Corp. Ltd, seeking to recover dues totalling approximately ₹ 992 crore. BluSmart and Gensol Engineering are facing allegations of corporate fraud and financial misconduct by the MCA, alongside Sebi's ongoing probe. In an interim order on 15 April, Sebi barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market, citing governance lapses and fund diversion. Sebi also prohibited the promoters from holding any directorial or key managerial positions at Gensol until further notice. According to the regulator, Gensol had secured ₹ 977.75 crore in loans, including ₹ 663.89 crore intended for the purchase of 6,400 EVs, which were later leased to BluSmart, a related party. On 12 May, the Jaggi brothers resigned from their positions as managing director and whole-time director, respectively.
Time of India
29-05-2025
- 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.
Mint
28-05-2025
- Business
- Mint
NCLT allows govt to attach Gensol's accounts, lockers
New Delhi: A company court has allowed the central government to attach the bank accounts and lockers of Gensol Engineering Ltd, its 10 subsidiaries and several individuals after investigations by multiple agencies and regulators revealed systemic fraud. '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 National Company Law Tribunal (NCLT) said in its order on Wednesday. 'The pattern of illegal fund diversion, asset misstatement, and share price manipulation has caused irreparable harm to public shareholders, creditors, and other stakeholders.' The order was based on the findings of probes conducted by the ministry of corporate affairs (MCA), Securities and Exchange Board of India (Sebi), and the Serious Fraud Investigation Office (SFIO). The MCA had moved the tribunal for 10 interim measures in the case. The NCLT took note of the government's submission that Gensol Engineering, along with other respondent companies and associated individuals, 'have committed grave violations of corporate governance norms'. Queries emailed to Gensol, and its founders Anmol Singh Jaggi and Puneet Singh Jaggi on Wednesday remained unanswered at the time of publishing. The tribunal took note of 'serious allegations of fraudulent conduct, including diversion of company funds by the promoters of Gensol Engineering and related entities' as well as allegations of violation of corporate governance norms, manipulation of financial statements and illegal alienation of company assets, according to the order. 'The investigation reports and regulatory findings from the ministry of corporate affairs, Sebi and SFIO prima facie support the petitioner's claims of systemic fraud involving substantial public interest,' NCLT said, granting the interim reliefs sought by the government. The tribunal will hear the matter next on 3 June. One of the provisions of the Companies Act that the ministry has invoked is section 339, which allows holding certain persons like directors, managers or other officers, who are party to a fraud, to be personally responsible, without any limitation of liability, for all or any of the debts or other liabilities of the company. The ministry had also sought a direction to the Reserve Bank of India (RBI) and the Indian Banks Association to freeze bank accounts and lockers owned by the respondents and attach the same on behalf of the government, which has been granted, showed the order. The interim relief secured by the government includes restraining the respondent individuals and companies from mortgaging, alienating or creating a lien or third-party interest on their movable or immovable properties, lockers and securities. The state-run Indian Renewable Energy Development Agency (Ireda) earlier this month filed an insolvency application against Gensol Engineering Ltd for a default of ₹ 510 crore. Ireda has also approached the Economic Offences Wing (EoW) of the Delhi Police. The matter came to limelight after the market regulator Sebi on 15 April in an interim order barred Gensol's promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from trading in the securities market, and from holding any key managerial post in Gensol or any other listed company and a forensic audit was ordered. Sebi's investigation found that the founders of the cleantech company had allegedly siphoned off loans from state-run lenders Power Finance Corp. (PFC) and Ireda for non-related and personal expenses. PFC has declared its loan exposure to Gensol Engineering as fraud after its preliminary findings and has approached the EoW. The lender has realized ₹ 44 crore by way of security encashment of fixed deposits and the trust and retention account (TRA), in which the loan was deposited, in the fourth quarter of FY25, taking the outstanding loan amount to ₹ 263 crore, PFC chairman and managing director Parminder Chopra said in a recent briefing. She said that PFC will consider recovery options through the insolvency process if it falls short of recovery through other methods, while adding that all options, including recovering through the debt recovery tribunal (DRT), are on the table.
Mint
28-05-2025
- Automotive
- Mint
Gensol Engineering subsidiary taken to Delhi high court over leased EVs
New Delhi: Gensol Engineering's subsidiary, Param Renewable Energy, has been taken to the Delhi high court by electric vehicle lessor SMAS Auto Leasing India Private Ltd. The petition sought the appointment of a court-appointed receiver to take custody of the vehicles. SMAS Auto also asked the court to direct the company to disclose, via affidavit, all movable and immovable assets, including bank accounts, they own or have an interest in, as per the petition, which was reviewed by Mint. In addition, SMAS Auto has urged the court to direct Param Renewable to disclose the current locations of the leased EVs. 'Issue an ex-parte ad-interim injunction restraining the Respondents from alienating, transferring, or encumbering their assets in any manner prejudicial to the petitioner's interest pending the hearing and final disposal of the arbitral proceedings, and until the execution of the arbitral award,' the petition stated. The plea noted that EVs are fast-depreciating assets due to their sensitive battery systems, which require ongoing maintenance and regular use. Prolonged inactivity, exposure to extreme heat, and a lack of monitoring, it says, significantly increase the risk of permanent battery damage and complete asset devaluation. The lessor added that it was unaware of the location or condition of the EVs, leaving it exposed to liability for any incidents involving the vehicles while they remain under Param's control. 'Pass an order directing the Respondents to disclose on affidavit all their respective movable and immovable assets, including bank accounts which are owned by them or in which they have any rights or interests,' the plea also states. SMAS Auto is seeking a court directive requiring Param Renewable to deposit ₹ 19.22 lakh in outstanding lease rentals and service charges, along with ₹ 3.77 crore as the foreclosure value following the premature termination of the lease agreement. The dispute stems from a Master Lease Agreement dated June 22, 2022, under which 62 EVs were leased to Param Renewable and fleet management services were to be provided. A deed of guarantee dated 28 June 2022, was also signed by Param's directors—Anmol Singh Jaggi and Puneet Singh Jaggi—offering an unconditional personal guarantee for all payment obligations under the agreement. According to the plea, Param defaulted on several lease payments despite receiving regular invoices this led to approach the court. The Delhi high court is expected to hear the latest petition on Thursday. Param Renewable Energy, established in 2019, is a prominent subsidiary of Gensol Engineering Ltd., specialising in third-party Operations and Maintenance (O&M) services for renewable energy assets. This case follows an earlier court order dated 7 May, in which the Delhi high court directed the seizure of 164 EVs leased by SMAS Auto to Gensol Engineering. The current petition marks the sixth such legal action in less than four weeks. The total number of EVs leased to Gensol and BluSmart that are now under judicial protection has risen to 698. Separately, on 22 May, the Debts Recovery Tribunal (DRT)-III, Delhi, directed Gensol Engineering Ltd and its subsidiary Gensol EV Lease Pvt. Ltd to maintain status quo on their secured assets and vehicles, following petitions by state-run lenders—Indian Renewable Energy Development Agency (Ireda) and Power Finance Corp. Ltd (PFC)—seeking recovery of dues totalling approximately ₹ 992 crore. On 16 May, the National Company Law Tribunal (NCLT) issued a notice to Gensol Engineering Ltd on a ₹ 510 crore insolvency plea filed by Ireda, alleging fraud and default in loan repayments.
