1 week Ago
The Gensol Engineering Ltd promoters, Anmol and Puneet Singh Jaggi, were detained under the provisions of the Foreign Exchange Management Act (FEMA). The promoter brothers of the company -- Anmol Singh Jaggi and Puneet Singh Jaggi -- are under the scanner of the federal probe agency following a SEBI report against them for alleged financial misconduct and diversion of funds. Last week, Securities and Exchange Board of India (Sebi) had barred Gensol's promoters-brothers Anmol and Puneet Jaggi-from accessing stock markets and ordered a forensic probe into their listed renewable energy firm.
An interim report of the markets regulator pointed to fund diversion by the brothers and governance failures within the company. The brothers face allegation of misuse of term loans availed of by Gensol from state-run IREDA and PFC.Gensol's share price has crashed by over 22% since the release of Sebi's interim report.
The shares closed at ₹100.80 apiece on the BSE on Wednesday.As per the markets regulator, Gensol secured ₹977.
75 crore in loans, of which ₹663.89 crore was to be used specifically for the purchase of 6,400 electric vehicles (EVs). These vehicles were to be leased to BluSmart, a related party.
But Gensol admitted in its response to Sebi in February that it had procured only 4,704 EVs.FRRB was constituted in 2002 to bring improvements in financial reporting practices and promote investor confidence in audited financial statements. The board reviews compliance with generally accepted accounting principles in the preparation of financial statements.
It also scrutinises compliance with disclosure requirements and reporting obligations of auditors..
