Companies Act Violation
Corporate affairs ministry to complete Gensol Engineering case probe in 3-4 months, says source
This story was originally published at 13:06 IST on 20 May 2025
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--Source: Corp affairs min to complete Gensol case investigation in 3-4 mos
NEW DELHI - The Ministy of Corporate Affairs is likely to complete the investigation into Gensol Engineering Ltd., BluSmart Mobility, and other related companies within the next three to four months, a ministry official said.
The ministry is investigating Gensol Engineering and 18 other companies for violation of Companies Act, the official said, after the Securities and Exchange Board of India in April said it was probing Gensol and its promoters for diverting loans taken from Power Finance Corp. Ltd. and Indian Renewable Energy Development Agency.
"If MCA gathers enough evidence, then case would not have to go to SFIO (Serious Fraud Investigation Office)," the official said on the condition of annonymity. The Serious Fraud Investigation Office is a statutory agency under the Ministry of Corporate Affairs which investigates corporate fraud.
SEBI said it found prima facie that a loan of INR 967 million from PFC taken by Gensol Engineering "was diverted to promoter and promoter-linked entities, bypassing the stated end-use of the PFC loan". The regulator also found that INR 375 million out of a total loan of INR 1.71 billion taken by Gensol EV Lease from IREDA was transferred to Anmol Jaggi, one of the promoters. "This aspect needs further examination," SEBI said in the interim order.
SEBI has also issued an interim order against Gensol and its two promoter-directors, Anmol Jaggi and Puneet Singh Jaggi, barring them from any securities market-related activity and from holding the post of director or any key managerial position in the company till further orders.
On Friday, Indian Renewable Energy Development Agency Ltd. filed an insolvency petition in the National Company Law Tribunal against Gensol Engineering Ltd.'s arm Gensol EV Lease Ltd., for outstanding dues of INR 2.19 billion. The state-owned company had earlier filed an insolvency petition against Gensol Engineering and the tribunal issued a notice to the latter on Friday. In the case against Gensol Engineering, IREDA had claimed outstanding dues of INR 5.10 billion.
The Enforcement Directorate has also conducted searches at Gensol's offices in Delhi, Gurugram, and Ahmedabad and detained Puneet Jaggi from a hotel in Delhi. The raids were conducted under the provisions of the Foreign Exchange Management Act.
At 1300 IST, shares of of Gensol Engineering were up 2.0% at INR 70.20 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Priyasmita Dutta
Written by Shubham Rana
Edited by Vandana Hingorani
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