Two Additional Independent Directors Resign from Gensol Engineering Amid SEBI Scrutiny
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Synopsis
In a significant development, two more independent directors have resigned from Gensol Engineering Ltd amidst rising concerns as SEBI restricts its promoters. This follows a series of troubling events regarding fund mismanagement and falsified records.
Key Takeaways
- Two independent directors have resigned from Gensol Engineering.
- SEBI has barred the company's promoters over allegations of fund diversion.
- The stock price has fallen nearly 90% from its peak.
- Gensol Engineering's management faces challenges amid regulatory scrutiny.
- BluSmart has halted ride bookings and is considering partnership with Uber.
New Delhi, April 18 (NationPress) Two additional independent directors at Gensol Engineering Ltd have stepped down amidst escalating challenges for the firm, as the Securities and Exchange Board of India (SEBI) has prohibited Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi due to alleged fund misappropriation and document manipulation.
The resignations of Harsh Singh and Kuljit Singh Popli were made effective immediately, as noted in a filing to the exchange. This follows the resignation of another independent director, Arun Menon, the day prior.
In his resignation statement, Popli expressed his distress over the recent events. “I was hoping for some positive developments to happen past one month, however the way things have unfolded and come to light, I am not in a position to continue as Independent Director,” he stated.
“I was hopeful that the company that has grown so fast and had been enjoying good reputation and goodwill, will continue to grow and create value for all stakeholders and governance issues as brought out will be addressed. However that has not happened (sic),” he continued.
Conversely, Harsh Singh mentioned other “professional commitments” as the reason for his departure.
“I am aware that my decision comes at a time when the Company is facing a difficult time. However, my professional commitments at Patna are coming in the way of my contributing to the company in a useful manner. I sincerely feel that a more experienced person in my place is required on the Board as an independent director to steer the company through in these difficult times (sic),” he noted.
Before the announcement regarding the two independent directors’ resignations, Gensol Engineering's stock, the parent company of electric vehicle manufacturer BluSmart, plummeted another 5 percent on Thursday, marking a total decline of nearly 90 percent from its 52-week high of Rs 1,124.90.
Gensol shares were trading at Rs 116.54, hitting the lower circuit on Thursday on the National Stock Exchange (NSE).
The market regulator has barred the Jaggi brothers from occupying any significant managerial positions within the company, effectively sidelining them from their leadership roles. Gensol has confirmed its compliance with the order.
The SEBI investigation revealed that promoter Anmol Singh Jaggi allegedly redirected company funds for personal use and to family members.
Compounding the chaos, BluSmart has reportedly ceased ride bookings and is contemplating becoming a fleet partner for Uber.
