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Key Points

Gensol Engineering is facing a severe corporate crisis as two more independent directors quit following SEBI's investigation into alleged fund misappropriation. The company's stock has dramatically plummeted nearly 90% from its peak, reflecting investor loss of confidence. SEBI has prohibited the Jaggi brothers from holding key managerial positions, effectively removing them from leadership roles. The ongoing turmoil has also impacted BluSmart, the company's EV subsidiary, which has reportedly paused ride bookings.

Key Points: Gensol Engineering Directors Quit Amid SEBI Probe Scandal

  • SEBI bars Jaggi brothers from leadership roles
  • Gensol Engineering stock crashes 90% from 52-week high
  • BluSmart halts ride bookings amid corporate turbulence
2 min read

2 more independent directors at Gensol Engineering quit amid SEBI heat

Two independent directors resign from Gensol Engineering as SEBI investigates fund diversion allegations against company promoters

"I was hoping for some positive developments... however the way things have unfolded, I am not in a position to continue - Kuljit Singh Popli, Resigned Independent Director"

New Delhi, April 18

Two more independent directors at Gensol Engineering Ltd have resigned amid mounting troubles for the company, as the Securities and Exchange Board of India (SEBI) barred Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi over alleged fund diversion and record falsification.

Harsh Singh and Kuljit Singh Popli have left the company with immediate effect, according to an exchange filing. This comes a day after another independent director, Arun Menon, tendered his resignation.

In his resignation letter, Popli said he was "pained" by the recent developments. "I was hoping for some positive developments to happen past one month, however the way things have unfolded and come to light, I am not in a position to continue as Independent Director," he wrote.

"I was hopeful that the company that has grown so fast and had been enjoying good reputation and goodwill, will continue to grow and create value for all stakeholders and governance issues as brought out will be addressed. However that has not happened (sic)," he added.

On the other hand, Harsh Singh cited other "professional commitments" for quitting.

"I am aware that my decision comes at a time when the Company is facing a difficult time. However, my professional commitments at Patna are coming in the way of my contributing to the company in a useful manner. I sincerely feel that a more experienced person in my place is required on the Board as an independent director to steer the company through in these difficult times (sic)," he wrote.

Before the exit of the two independent directors was announced, the stock of Gensol Engineering, the parent company of EV maker BluSmart, crashed another 5 per cent on Thursday, taking the total fall to nearly 90 per cent from the 52-week high of Rs 1,124.90.

Gensol shares were trading at Rs 116.54, locked in the lower circuit on Thursday on the National Stock Exchange (NSE).

The markets regulator has prohibited the Jaggi brothers from holding any key managerial positions within the company, effectively removing them from their leadership roles. Gensol said it has complied with the order.

The SEBI probe found that promoter Anmol Singh Jaggi had allegedly transferred company funds to family members and for personal use.

Adding to the turmoil, BluSmart has reportedly halted ride bookings and is planning to become a fleet partner for Uber.

—IANS

- IANS

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Reader Comments

R
Rahul K.
This is really disappointing to see. Gensol had so much potential in the EV space. Independent directors resigning one after another doesn't inspire confidence at all. Hope SEBI takes strict action if wrongdoing is proven.
P
Priya M.
The resignation letters say it all - especially Popli's "pained" comment. When independent directors can't stand by a company, investors should take note. 🚩
A
Amit S.
I think we should wait for the full SEBI report before jumping to conclusions. The company has created jobs and contributed to India's EV push. Not defending wrongdoing, but let's not write them off completely yet.
S
Sanjana T.
From ₹1124 to ₹116? Ouch. That's brutal for investors. This is why corporate governance matters so much - one scandal can wipe out years of growth in days.
V
Vikram P.
Interesting how Harsh Singh cites "professional commitments" when clearly there's more to it. Why can't corporate leaders just be transparent? 🤔
N
Neha R.
The real victims here are the employees and small investors who believed in the company's vision. Hope SEBI ensures proper compensation if fraud is proven.

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