Gensol Engineering Faces Tribunal Over Fund Diversion and Governance Issues

Gensol Engineering's appeal was dismissed by the Securities Appellate Tribunal (SAT), although the tribunal granted the company permission to respond to Sebi's bar from the securities market.

Sebi had prohibited Gensol and its promoters, Anmol and Puneet Singh Jaggi, amid accusations of fund diversion and governance failures. The SAT's decision allows Gensol two weeks to respond to Sebi, with further hearings expected shortly.

The financial implications of the situation remain uncertain for Gensol, which previously faced accusations of fund misappropriation within its operations. The company is seeking legal counsel to prepare its response, as it tries to mitigate the allegations and the potential impact on its operations and stakeholders.

(With inputs from agencies.)