Gensol Engineering Under Scrutiny: MCA Investigates Alleged Financial Malfeasance

The Ministry of Corporate Affairs (MCA) is intensifying its investigation into Gensol Engineering, a situation that now involves 18 associated companies. This probe is expected to reach its conclusion within three to five months, according to undisclosed sources reported by ANI.

The focal point of the enquiry is the alleged misuse of loans extended to Gensol Engineering by state-backed bodies like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). In a previous development, the Securities and Exchange Board of India (SEBI) imposed an interim restriction on Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol, from participating in the securities market. They were accused of diverting funds and poor corporate governance practices.

Allegations are that loan funds meant for the purchase of electric vehicles for commercial use were misappropriated for personal luxury and benefits for private promoters. The case, initially sparked by a complaint in June 2024, is under rigorous examination by SEBI, with its final report yet to be issued.

(With inputs from agencies.)