MCA starts probe into Gensol, BluSmart Mobility
The Ministry of Corporate Affairs (MCA) has started an investigation into the functioning of both BluSmart Mobility and Gensol Engineering, sources aware of the development told The Hindu. The investigation is being undertaken under the powers bestowed on the Union government under Section 210 of the Companies Act 2013.
'The Ministry of Corporate Affairs last week launched a formal investigation into the affairs of Blusmart and Gensol,' one of the sources in the Ministry said. 'It is under Section 210 of the Companies Act. A senior official from the Ministry will be conducting the investigation.'
Section 210 empowers the Union government to investigate the affairs of a company if it has received a report of a registrar or inspector after an examination of the company's books of account, an intimation of a special resolution passed by a company that the affairs of the company ought to be investigated, or if it is in the public interest to do so.
It has been learnt that the current investigation into Blusmart and Gensol has been undertaken under the third provision — of public interest — but that the books of account of the companies would also be scrutinised as part of the investigation.
Gensol Engineering has been in the spotlight since April, when the markets regulator Securities and Exchange Board of India (SEBI) barred the company's promoters — brothers Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities market for alleged fund diversions and corporate governance lapses.
BluSmart Mobility, an e-cab service, is promoted by Mr. Anmol Singh Jaggi. It has suspended operations since the SEBI order.
The official in the Corporate Affairs Ministry did not specify a timeline for the investigation.
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