SOURCE : NEW18 NEWS
Last Updated:May 17, 2025, 13:25 IST
Aga, who took charge as CFO in March, says in his resignation letter ‘the company is facing significant challenges, with multiple regulatory bodies conducting investigations’.
Gensol CFO’s exit comes shortly after the resignation of Managing Director Anmol Singh Jaggi and Whole-Time Director Puneet Singh Jaggi on May 12.
Gensol Engineering Chief Financial Officer (CFO) Jabirmahendi Mohammedraza Aga has stepped down, citing ongoing regulatory probes and internal disarray. The company confirmed his resignation in a stock exchange filing dated May 16, 2025.
Aga, who took charge as CFO in March following the resignation of Ankit Jain, said in his resignation letter that “the company is currently facing significant challenges, with multiple regulatory bodies conducting investigations”. He added that disorganised critical data across departments and the lack of a cohesive support system have severely hampered the company’s ability to respond to these inquiries. “This is affecting my physical and mental well-being,” he stated.
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His exit comes shortly after the resignation of Managing Director Anmol Singh Jaggi and Whole-Time Director Puneet Singh Jaggi on May 12. The Jaggi brothers were earlier barred by the Securities and Exchange Board of India (SEBI) from holding any key positions in Gensol as part of an interim order dated April 15. The same order also restricted them and the company from accessing the securities market until further notice.
The company’s crisis has triggered a wave of resignations. Following SEBI’s action, three independent directors — Arun Menon, KS Popli, and Harsh Singh — also resigned in rapid succession.
Adding to the company’s woes, its lender, Indian Renewable Energy Development Agency (IREDA), has filed a petition at the National Company Law Tribunal (NCLT) in Ahmedabad against Gensol Engineering, citing defaults and potential defaults across five loan facilities. The company has until June 3 to file its response. IREDA had earlier issued loan recall and demand notices on May 4 and invoked the promoters’ personal guarantees on May 13. The lender has claimed a default of ₹510 crore.
Between FY22 and FY24, Gensol had secured Rs 977.75 crore in loans from IREDA and Power Finance Corporation (PFC), including Rs 663.89 crore earmarked for the purchase of 6,400 electric vehicles (EVs). However, the company admitted to buying only 4,704 EVs worth Rs 567.73 crore, as verified by supplier Go-Auto. With an expected equity contribution of 20 per cent, the total outlay should have been ₹829.86 crore, leaving ₹262.13 crore unaccounted for.
Sebi’s investigation uncovered that funds intended for EV procurement were diverted to entities linked to the Jaggi brothers. Some of these funds were allegedly used for personal expenditures, including the purchase of a luxury apartment, transfers to family members, and investments in private firms controlled by the promoters.
The Ministry of Corporate Affairs (MCA) is also conducting a separate investigation into Gensol Engineering and its associate BluSmart Mobility for potential violations of company law.
- First Published:
May 17, 2025, 13:25 IST
