ICAI Scrutinizes Financial Practices: Gensol and BluSmart Under Investigation

The Institute of Chartered Accountants of India (ICAI) is reviewing financial statements of Gensol Engineering Ltd and BluSmart Mobility amid allegations of fund diversions and governance lapses. The study, focusing on 2023-24 reports, is expected to conclude in six months, potentially leading to further investigations.

The Institute of Chartered Accountants of India (ICAI) has announced an anticipated six-month timeline to conclude its review of the financial statements belonging to the besieged Gensol Engineering Ltd and BluSmart Mobility. Officials have confirmed that the Financial Reporting Review Board (FRRB) is examining documents related to the 2023-24 fiscal year.

The scrutiny comes as Gensol Engineering is mired in controversies linked to alleged fund diversions and governance issues. Last week, regulators barred the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from participating in the securities market due to various infractions. BluSmart Mobility, a ride-hailing service, is similarly promoted by Anmol Singh Jaggi.

The FRRB's review aims to assess compliance with a slew of regulations, including Accounting Standards, Standards on Auditing, and pertinent sections of the Companies Act, 2013. Should serious irregularities emerge, the case may escalate to ICAI's Director Discipline and relevant regulatory authorities for a comprehensive probe.

(With inputs from agencies.)