Gensol Engineering's MD Anmol Singh Jaggi resigns amid SEBI probe
What's the story
Gensol Engineering's Managing Director Anmol Singh Jaggi has resigned from his post following an order from the Securities and Exchange Board of India (SEBI).
The company's whole-time director Puneet Singh Jaggi has also stepped down.
The duo's resignation comes nearly a month after SEBI barred them from holding key positions in their own company.
Regulatory actions
SEBI's stringent measures against Gensol Engineering
SEBI cracked the whip on Gensol Engineering and its promoters, the Jaggi brothers, over governance lapses.
The regulator banned the company and its promoters from accessing the securities market till further notice. It also prohibited them from holding any directorship or key management position in Gensol.
This came after Gensol failed to get relief from the Securities Appellate Tribunal last week.
Financial irregularities
Gensol's financial discrepancies under SEBI scrutiny
Between FY22 and FY24, Gensol obtained loans worth ₹977.75 crore from IREDA and PFC. A major chunk of this loan was meant for buying 6,400 electric vehicles (EVs).
However, Gensol admitted to purchasing only 4,704 EVs worth ₹567.73 crore as per supplier Go-Auto.
This raises questions about the unexplained ₹262.13 crore.
Misuse of funds
SEBI probe reveals fund misappropriation
The SEBI probe revealed that funds intended for EV purchases were frequently routed back to Gensol or Jaggi brothers' linked entities.
Some of these funds were reportedly used for personal expenses like buying a luxury apartment, transfers to close relatives, and also investments benefiting private entities owned by the promoters.
This misuse of funds has further muddied the waters for Gensol Engineering Ltd.