Corp Affairs Ministry Directs Investigation Against Gensol Engineering, Blusmart

Corp Affairs Ministry Directs Investigation Against Gensol Engineering, Blusmart

On April 15, the Securities and Exchange Board of India (SEBI) passed an order prohibiting Gensol Engineering’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations.

An investigation into Gensol Engineering and BluSmart Mobility has been introduced by the corporate affairs ministry owing to alleged violations of company law including lapses in corporate governance and fund diversions. The move comes after SEBI barred Gensol’s promoters from the securities market. In addition, the Enforcement Directorate is investigating Gensol and ICAI is reviewing the companies’ financial statements.

On April 15, the Securities and Exchange Board of India (SEBI) passed an order prohibiting Gensol Engineering’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. The order came amid accusations of the Jaggis embezzling loan funds from their publicly-listed Gensol Engineering for personal use, raising concerns over financial misconduct and lapses in corporate governance. Anmol Singh Jaggi is the promoter of BluSmart Mobility which offers ride-hailing services.

The corporate affairs ministry ordered a probe against the companies last week under section 210 of the Companies Act 2013, officials said. The ministry has powers to order an investigation into the affairs of a company on various grounds including in public interest under section 210. Meanwhile, the review of the financial statements of Gensol Engineering Ltd and BluSmart Mobility is likely to be completed in six months by the Institute of Chartered Accountants of India (ICAI). The Financial Reporting Review Board (FRRB) of ICAI is reviewing the financial statements of the two companies for FY 2023-24. The FRRB reviews companies’ financial statements to gauge compliance with accounting standards, standards on auditing, schedule II and III of the Companies Act 2013 among others. Compliance with various guidance notes on auditing and accounting and directions/master circulars issued by the Reserve Bank of India (RBI) is also assessed by the FRRB.