Jaggi brothers resign from top posts at scam-hit Gensol Engineering

Mumbai, May 12 (IANS) Scam-hit Gensol Engineering Ltd informed the stock exchanges on Monday that the company’s Managing Director Anmol Singh Jaggi and his brother, whole-time Director Puneet Singh Jaggi, have resigned from their posts and, consequently, also cease to be members of various committees of the company.

Anmol Jaggi’s resignation letter submitted to the stock exchanges stated that "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. I take this opportunity to thank the entire Board, the Management Team and the employees of the Company for the support and cooperation extended to me during my tenure."

The Securities Appellate Tribunal earlier rejected an appeal by Gensol Engineering Ltd to stay a SEBI interim order barring Gensol and its promoters Anmol Singh and Puneet Singh over the issue of fund diversion and governance concerns.

The bench of the appellate tribunal gave the company two weeks to reply to the capital markets regulator on the temporary ex-parte order and directed the markets regulator to give a final order in Gensol's case within four weeks.

On April 15, Sebi released a detailed interim order showing what went wrong at Gensol. The order said the promoters of Gensol, including Anmol and Puneet Singh Jaggi, had treated the company like their personal 'piggy bank'. There were no proper financial controls in place, and the promoters had diverted loan money to themselves or related entities.

Gensol had secured loans amounting to Rs 977.75 crore from IREDA and PFC between FY22 and FY24. Of this, Rs 663.89 crore was specifically meant for the purchase of 6,400 EVs. However, the company admitted to buying only 4,704 vehicles, worth Rs 567.73 crore, as verified by supplier Go-Auto.

The Sebi investigation report also states that it found "no manufacturing activity" at Gensol Engineering Ltd’s electric vehicle (EV) plant in Pune, with only two to three labourers present at the site which itself was a leased property.

Gensol, the parent company of all-electric vehicle (EV) app BluSmart which was providing green cab services, allegedly forged letters from its two lenders - PFC and Indian Renewable Energy Development Agency Ltd (IREDA) - to show that it was servicing its debt regularly. However, the claim was exposed when the credit rating agencies began verifying the letters with the lenders.

Meanwhile, government-owned Power Finance Corporation Ltd (PFC) filed a complaint with the Delhi police against Gensol Engineering Ltd for allegedly filing false documents to take loans for buying electric vehicles.

--IANS

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