MCA, Sebi discuss probe into Gensol Engineering

New Delhi: Securities and Exchange Board of India (
Sebi
) chairman Tuhin Kanta Pandey has met corporate affairs secretary Deepti Gaur Mukerjee to discuss ongoing investigations into
Gensol Engineering
, among other regulatory matters, a person aware of the development told ET.
The meeting, held in the national capital on Friday, came amidst a crackdown on Gensol by the ministry and regulators, especially Sebi, over alleged fraud and
corporate governance
lapses.
Last month, Sebi barred Gensol's promoters-brothers Anmol and Puneet Jaggi-from accessing the securities market and ordered a
forensic audit
of the listed
renewable energy
company, after an interim report of the regulator flagged fund diversion by the brothers and governance lapses.
The corporate affairs ministry (
MCA
) also launched a separate probe into Gensol and 18 related entities, including EV cab service provider
BluSmart Mobility
. The probe is expected to be completed within 3-5 months, a senior official said last week.
The Jaggi brothers have also allegedly misused term loans extended to Gensol by state-run lenders
Indian Renewable Energy Development Agency
(Ireda) and
Power Finance Corporation
(PFC).
Pandey and Mukerjee are also understood to have discussed routine regulatory matters during their meeting. Queries sent to MCA and Sebi on Monday remained unanswered until the paper went to press.
Following a Sebi reference, the National Financial Reporting Authority (NFRA) has launched a preliminary enquiry into Gensol's books. The Institute of Chartered Accountants of India (ICAI), too, is reviewing the FY24 financial statements and statutory audit reports of Gensol and BluSmart.
Sebi started examining the matter after receiving a complaint in June 2024 alleging manipulation of share price and diversion of funds at Gensol.
Gensol's share price had scaled a peak of ₹1,126 a piece last fiscal, with a market capitalisation of around ₹4,300 crore, according to the regulator's interim report.
But by April 11, 2025, days before Sebi released the interim report, the share price had crashed to ₹133, driving down the market cap to just ₹506 crore. On Monday, the shares closed at ₹65.50 apiece on the BSE, down 2% from the previous close.

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