Aga’s exit comes shortly after SEBI barred the Jaggi brothers from key roles and market access, triggering a wave of resignations and intensifying scrutiny of Gensol’s governance
Gensol Engineering continues to reel under regulatory scrutiny and internal turmoil, as its Chief Financial Officer, Jabirmahendi Mohammedraza Aga, has stepped down just two months into the role. His resignation follows a string of high-profile exits from the embattled clean energy firm.
In a filing with the stock exchange, the company confirmed Aga’s departure, marking another blow to the company’s leadership after its Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi resigned earlier this month. The resignations come on the heels of an interim order issued by the Securities and Exchange Board of India (SEBI) on April 15, which barred the Jaggi brothers from holding key managerial positions and from accessing the securities market until further notice.
In his resignation letter, Aga cited severe operational dysfunction and a lack of institutional support as key reasons behind his decision. He stated that the company was ‘facing significant challenges,’ with ongoing investigations from multiple regulatory authorities and ‘disorganisation of critical data across departments,’ making it difficult to effectively cooperate with inquiries. He also highlighted the impact on his physical and mental well-being.
Aga had taken charge in March, following the resignation of the former CFO, Ankit Jain. His departure adds to a growing list of exits, including independent directors Arun Menon, KS Popli, and Harsh Singh, all of whom stepped down in the aftermath of SEBI’s interim order.
The company is also under pressure from its lender, the Indian Renewable Energy Development Agency (IREDA), which has dragged Gensol Engineering to the National Company Law Tribunal (NCLT), citing defaults and potential defaults across five loan facilities.
Prior to approaching the tribunal, IREDA issued recall and demand notices to the company on 4 May, and invoked the personal guarantees of the promoters on 13 May. The lender is seeking to recover Rs 510 crore in outstanding dues.
Between FY22 and FY24, Gensol secured loans worth Rs 977.75 crore from IREDA and the Power Finance Corporation (PFC). Of this, Rs 663.89 crore was earmarked for the procurement of 6,400 electric vehicles (EVs). However, the company has admitted to purchasing only 4,704 EVs worth Rs 567.73 crore, according to supplier Go-Auto. Given the mandated 20% equity contribution, the total expected outlay was Rs 829.86 crore, leaving Rs 262.13 crore unaccounted for.
SEBI’s probe found that funds intended for EV procurement were diverted to entities linked to the Jaggi brothers, with some amounts allegedly used for personal expenses, including the purchase of a luxury apartment and transfers to relatives.