Gensol Engineering MD Anmol Jaggi and his brother Puneet Singh Jaggi have their resignations to the company on Monday — weeks after a SEBI order barred them from the securities market. Shares of the company have been in freefall for weeks after the promoters were accused of siphoning off loan funds from their publicly-listed company for personal use.
According to a regulatory filing on Monday, both Anmol Singh Jaggi and Puneet Singh Jaggi have now tended their resignations in line with SEBI listing regulations. Their tenure will come to an end at the closure of business hours on May 12. The company also said that they had consequently ceased to be a member of various committees within Gensol Engineering.
Emails sent by the Jaggi brothers and attached to the regulatory filing said said that they were “resigning due to the direction given under SEBI interim order” from April15. The duo had come under scrutiny for alleged fund diversions and corporate governance lapses last month — with the regulatory body passing an order to bar them from the securities market. The corporate affairs ministry has also ordered a probe into the affairs of crisis-hit Gensol Engineering and BluSmart Mobility for alleged violations of companies law.
The SEBI order claimed that the company had obtained loans from PFC and IRDEA Ltd for procurement of EVs and EPC (Engineering, Procurement and Construction) contracts. These funds were however ‘diverted’ to purchase assets in the name of the promoters and their relatives or under various various shell entities floated by the group. The agency has reportedly identified such assets and it was also noticed that they had used diverted funds to acquire foreign exchange.