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.
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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