Gensol Engineering Faces Sebi Heat Over Alleged Financial Misconduct
Gensol Engineering is under scrutiny from Sebi due to alleged fund diversion and governance issues. SAT allowed Gensol to respond to Sebi's interim order, which barred the company and its promoters from the securities market. The Jaggi brothers face restrictions on holding key positions at Gensol.
- Country:
- India
On Wednesday, Gensol Engineering announced that the Securities Appellate Tribunal (SAT) has disposed of its appeal but allowed the company to respond to Sebi's interim order restricting the firm and its promoters from participating in the securities market.
Sebi's interim order, issued last month, accused Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, of fund misappropriation and governance lapses, barring them from the market until further notice. The SAT ruling grants Gensol two weeks to file their rebuttal, followed by a regulatory hearing and a decision within four weeks.
The ongoing controversy includes allegations of share manipulation and funds diversion, with Sebi revealing misuse of Rs 977.75 crore in loans. A forensic audit has been ordered to assess Gensol's financial practices. The case continues to unfold amid legal consultations and a vacancy in compliance leadership.
(With inputs from agencies.)
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