Gensol CFO Resigns, Citing Data Disarray and Chaos Amid Regulatory Probes

Days after Gensol promoters resigned, Chief Financial Officer (CFO) Jabirmahendi Mohammedraza Aga has also left the crisis-hit company with immediate effect.

In his resignation letter, which is available on stock exchanges, Aga stated that Gensol Engineering is currently facing significant challenges, with multiple regulatory bodies conducting investigations and top management resigning from their positions.

Furthermore, the disorganization of critical data across departments is impeding the company's ability to effectively respond to ongoing inquiries due to a lack of a cohesive support system, Aga stated.

"The immense pressure caused by these circumstances is negatively impacting my physical and mental well-being, resulting in a complete loss of focus on my responsibilities. As a result, I have made the difficult decision to resign, believing it is in the best interests of the company under these trying circumstances," he stated.

According to an exchange filing dated May 12, Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi resigned from the company in response to the interim order issued by market regulator Sebi. Anmol served as Managing Director, and Puneet as Whole-time Director.

On April 15, the Securities and Exchange Board of India (Sebi) barred Gensol Engineering and its two promoters from the securities markets until further orders were issued in a case involving fund diversion and governance lapses.

The regulator also barred the Jaggi brothers from serving as directors or key executives at Gensol until further notice. It also directed Gensol Engineering Ltd (GEL) to postpone the previously announced stock split.

The market regulator's order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 regarding share price manipulation and diversion of funds from Gensol Engineering and began investigating the matter.

"The prima facie findings have shown the mis-utilisation and diversion of funds of the company (GEL) in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also direct beneficiaries of the diverted funds," the Sebi order stated.