Director Resigns Amidst Gensol Engineering's Financial Turmoil

Arun Menon, Gensol Engineering's independent director, has resigned due to concerns over the company's financial practices, following a SEBI order barring its promoters from securities markets for fund diversion. Menon's resignation highlights internal issues regarding debt sustainability and financial governance within the company.

Amidst mounting financial challenges, Gensol Engineering's independent director, Arun Menon, has stepped down, citing concerns over the company's strategies in managing its debt. Menon's resignation followed a market-wide order by SEBI, restricting Gensol and its promoters due to alleged fund diversion.

SEBI's investigation unveiled significant governance lapses and fund misappropriation, leading to a clampdown on market activities for Gensol, a solar energy venture. Menon expressed dissatisfaction with the company's leverage strategy, questioning the sustainability of its high debt costs.

This decision comes in the wake of a broader scrutiny of Gensol's financial dealings, including a lowered execution in electric vehicle procurement and unaccounted funds. SEBI's continuing forensic audit aims to bring more clarity to the financial mismanagement allegations.

(With inputs from agencies.)