2 More Directors Quit Gensol Engineering

New Delhi: Two more independent directors at Gensol Engineering Ltd have resigned amid mounting troubles for the company, as the Securities and Exchange Board of India (SEBI) barred Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi over alleged fund diversion and record falsification.

Harsh Singh and Kuljit Singh Popli have left the company with immediate effect, according to an exchange filing. This comes a day after another independent director, Arun Menon, tendered his resignation.

In his resignation letter, Popli said he was ‘pained’ by the recent developments. “I was hoping for some positive developments to happen past one month, however the way things have unfolded and come to light, I am not in a position to continue as Independent Director,” he wrote.

“I was hopeful that the company that has grown so fast and had been enjoying good reputation and goodwill, will continue to grow and create value for all stakeholders and governance issues as brought out will be addressed. However that has not happened (sic),” he added.

On the other hand, Harsh Singh cited other ‘professional commitments’ for quitting. “I am aware that my decision comes at a time when the Company is facing a difficult time. However, my professional commitments at Patna are coming in the way of my contributing to the company in a useful manner. I sincerely feel that a more experienced person in my place is required on the Board as an independent director to steer the company through in these difficult times (sic),” he wrote.

Before the exit of the two independent directors was announced, the stock of Gensol Engineering, the parent company of EV maker BluSmart, crashed another 5 per cent on Thursday, taking the total fall to nearly 90 per cent from the 52-week high of Rs1,124.90.

Gensol shares were trading at Rs116.54, locked in the lower circuit on Thursday on the National Stock Exchange (NSE).The markets regulator has prohibited the Jaggi brothers from holding any key managerial positions within the company, effectively removing them from their leadership roles. Gensol said it has complied with the order.

The Sebi probe found that promoter Anmol Singh Jaggi had allegedly transferred company funds to family members and for personal use.