MUMBAI: Gensol Engineering promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, have resigned from the company following the market regulator Sebi's interim order last month. Anmol held the post of Managing Director while Puneet Singh Jaggi was a Whole-time Director.
Earlier on April 15, the Securities and Exchange Board of India (Sebi) barred Gensol Engineering promoters - Anmol Singh Jaggi and Puneet Singh Jaggi - from the securities markets till further orders in a fund diversion and governance lapses case.
The regulator also debarred the Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further orders.
"Anmol Singh Jaggi, Managing Director and Puneet Singh Jaggi, Whole-time Director, have tendered their resignation; the reasons are mentioned in their resignation letter. Consequently, they shall also cease to be a Member of the various committees of the company," said the company in a regulatory filing.
The resignation of founder members comes after the Securities Appellate Tribunal's (SAT's) decision to deny interim relief to the company, which is currently under investigation for alleged fund diversion.
"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 the 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," Anmol Jaggi said in his resignation mail.
Problems at Gensol started when Sebi discovered severe corporate governance at the company and trails of fund diversion by the promoters.
At the heart of the case is a Rs 978 crore term loan sanctioned by the Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC), intended for the purchase of 6,400 electric vehicles (EVs) to be leased to Gensol’s affiliate, BluSmart Mobility. Gensol allegedly purchased only 4,700 EVs for Rs 567 crore, with Rs 262 crore still unaccounted for, even a year after disbursement.