The Enforcement Directorate (ED) on April 24 detained Gensol co-promoter Puneet Singh Jaggi from a Delhi hotel and also conducted searches against beleaguered Gensol Engineering Ltd, PTI reported citing sources.
According to the PTI report, Puneet Jaggi was detained by the ED from a Delhi hotel while Anmol Jaggi is said to be in Dubai.
The raids were conducted at company’s premises in Delhi, Gurugram and Ahmedabad under the provisions of the Foreign Exchange Management Act (FEMA).
The promoter brothers of the company — Anmol Singh Jaggi and Puneet Singh Jaggi — are under the scanner of the probe agency following a SEBI report against them for alleged financial misconduct and diversion of funds.
The ED action is based on the SEBI order which claimed that Gensol Engineering obtained loans from Power Finance Corporation and IRDEA Ltd for procurement of EVs and EPC contracts.
However, according to the sources, the company instead of utilising these funds for the intended purposes had diverted the funds for purchasing the assets in personal name of promoters or their relatives or in various shell entities floated by the group.
The Securities and Exchange Board of India (SEBI) had barred Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi from participating in the securities market and from holding any position as directors or key managerial personnel in any listed company.
SEBI launched the action after receiving complaints of share price manipulation and loan defaults. The regulator’s investigation found widespread misuse of company funds and severe lapses in financial controls.
Earlier, the Ministry of Corporate Affairs (MCA) had initiated a suo motu inquiry into Gensol Electric, sources told Business Today TV. The ministry is looking into wrongdoings at Gensol Electric, sources said, adding that a suo moto inquiry has been initiated and the company’s regulatory filings and accounts will be examined. Any action against the company will be based on the findings of the inquiry, the sources added. No timeline has been fixed for the inquiry as yet.
