Gensol Engineering Limited has announced that Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi have stepped down from their positions.
SEBI has mandated a comprehensive forensic audit of Gensol's financial statements spanning from FY22 to FY25.
Gensol Engineering Limited has announced that Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi have stepped down from their positions, effective May 12, 2025, says a report by Entrackr.
The executives cited compliance with the Securities and Exchange Board of India's (SEBI) Interim Order from April 15, 2025, as the reason for their departure. Their resignations include withdrawing from all board committees as well.
SEBI has mandated a comprehensive forensic audit of Gensol's financial statements spanning from FY22 to FY25. The regulatory body has also prohibited the Jaggi brothers from participating in securities markets and occupying leadership roles within the organisation.
According to the interim order, the promoters are alleged to have diverted company funds -- originally borrowed for electric vehicle acquisitions intended for their affiliate BluSmart -- toward personal expenditures.
These funds were reportedly used to purchase a high-end residential property in Gurgaon, acquire golf equipment, obtain foreign currency, and finance international travel.
The executive vacancies come at a particularly challenging moment for Gensol. The company has yet to announce succession plans or organizational restructuring strategies.
The turmoil has extended to BluSmart, Gensol's electric vehicle mobility partner, which has suspended its operations in Bengaluru, Mumbai, and Delhi. The company, which counts BP Ventures and Mayfield among its investors, now faces driver protests regarding unpaid compensation and employment terminations.
Meanwhile, Evera Cabs (operated by Prakriti Mobility) has reclaimed approximately 500 electric vehicles previously under BluSmart's management. Despite reported discussions with Uber regarding a potential fleet acquisition, negotiations appear to have reached an impasse.
BluSmart is reportedly engaging with two specialised distressed asset funds that focus on climate and transportation sectors, exploring potential revival options. However, considering the gravity of SEBI's allegations and the current financial distress, both Gensol Engineering and BluSmart face significant uncertainty regarding their future operations and viability.
