SAT allows Gensol to file response to SEBI’s interim order
The interim order, which disclosed misused funds, fabricated documents, and alleged personal use of company funds, have brought the listed company under regulatory and public scrutiny.
The Securities Appellate Tribunal (SAT) has allowed troubled Gensol Engineering to file its response on the Securities and Exchange Board of India’s (SEBI) interim order that opened a can of worms sending the firm into a downward spiral.
According to a stock exchange filing, SAT disposed Gensol’s appeal, but allowed the company to file its response to the order within two weeks.
The markets regulator will also hear from the company within two weeks and pass an appropriate order within the next four weeks.
Gensol added that due to the absence of a compliance officer at the firm, lack of appropriate number of directors and key managerial personnels, there was a delay in preparing and finalising its disclosure.
The company’s board has been relatively vacant with board members and promoters, Anmol Jaggi and Puneet Jaggi, tendering their resignation earlier this week after SEBI’s interim order instructed them to step away from managerial positions within the company.
Four other independent directors had left the company due to the ongoing troubles at the firm.
Furthermore, IREDA has initiated insolvency proceedings against Gensol over a default of Rs 510 crore.
The string of troubles began with an interim order that was published by SEBI in April after an investigation showed that the firm was involved in the misutilisation and diversion of company funds in a fraudulent manner by its promoters and directors, Anmol and Puneet Singh Jaggi.
SEBI’s investigation was triggered after credit rating agencies noted that Gensol had shared fabricated conduct letters from Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC) regarding loan payments.
Edited by Megha Reddy