Gensol Engineering Faces Bankruptcy Amid Financial Misconduct Allegations
Ireda has filed a bankruptcy application against Gensol Engineering due to financial misconduct and fund diversion by its promoters. Sebi's investigation barred the promoters from securities markets and imposed penalties following misuse of funds. Gensol has been accused of treating corporate funds as proprietary assets.
- Country:
- India
The Indian Renewable Energy Development Agency (Ireda) has initiated bankruptcy proceedings against Gensol Engineering by filing an application with the National Company Law Tribunal. This action arises as a result of financial misconduct, including fund diversion by Gensol's promoters.
Gensol's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, are under scrutiny following a Securities and Exchange Board of India (Sebi) investigation, which barred them from the securities markets pending further investigation. They resigned from their directorial positions following the interim order.
The allegations include misuse of corporate funds to purchase luxury items and personal properties, failing investors and lenders. Sebi has directed Gensol to conduct a forensic audit as part of broader efforts to establish accountability and transparency.
(With inputs from agencies.)
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