Gensol Engineering MD Anmol Singh Jaggi and whole-time director Puneet Singh Jaggi resigned from their positions on Monday in adherence to the securities and exchange board of India’s (SEBI) interim order, the Economic Times reported. Their resignations are effective from May 12 onwards. This comes as the company and its top leadership have come under regulatory radar for corporate misgovernance and financial misconduct.
Their resignation came after the Securities Appellate Tribunal’s (SAT) rejected to put a stay on Sebi’s interim order last week.
“I am hereby resigning from the post of Managing Director of Gensol Engineering with effect from the close of business hours on May 12, 2025. Further, I declare that I am resigning due to the direction given under SEBI Interim Order dated April 15, 2025,” said Anmol Singh Jaggi in a letter addressed to the company’s board, according to ET.
This comes a month after the market’s regulator banned the Jaggi brothers from accessing the securities markets as accusations of siphoning off loan funds from their listed company, Gensol Engineering, for personal use surfaced. The main accusation against the founders is that of misuse of funds worth Rs 978 crore in term loans jointly sanctioned by the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC).
The funds were supposed to be utilised to purchase 6,400 electric vehicles to be leased to an affiliate company of Gensol, BluSmart Mobility. However, only 4,700 out of the total 6,400 vehicles were purchased at a cost of Rs 567 crore and the remaining Rs 262 crore is unaccounted for. Sebi accused that the remaining sum was used for personal transactions, including the purchase of luxury real estate and payments made to entities related to promoters of the company.
Besides Sebi, the ministry of corporate affairs has also initiated a probe into the two companies founded by the Jaggi brothers.
