Gensol Engineering Faces Major Setbacks Amid Governance Issues and Director Resignation

Gensol Engineering is under scrutiny by Sebi for fund diversion and governance lapses. Independent director Arun Menon resigns, citing growing concerns over high debt and limited value addition. Sebi has barred company promoters from securities markets and is conducting a forensic audit into Gensol's books and activities.

Gensol Engineering finds itself in hot water as the Securities and Exchange Board of India (Sebi) investigates allegations of fund diversions and governance misconduct. The independent director of the firm, Arun Menon, has resigned with immediate effect, citing concerns over the company's financial leveraging.

The markets regulator has barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities markets, citing ongoing investigations. Menon's departure follows a series of internal concerns regarding the sustainability of servicing high debt costs.

Sebi has moved to conduct a forensic audit of Gensol's accounts, intending to uncover the depth of alleged financial misdoings. The scandal has highlighted how corporate funds were redirected to purchase luxury assets, leaving significant portions of loans intended for electric vehicle purchases unaccounted for.

(With inputs from agencies.)