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The Ministry of Corporate Affairs (MCA) investigation in Gensol Engineering case, encompassing 18 companies, will be completed in 3-5 months, sources told ANI.
There may not be a need to send Gensol Engineering case to Serious Fraud Investigation Office (SFIO) probe if MCA gets enough evidence in its investigation, the sources added. Earlier this month, MCA had ordered a probe into the affairs of Gensol Engineering for alleged violations of companies law.At the centre of the controversy is the alleged misutilisation of loans availed by Gensol Engineering from state-run IREDA and PFC. In April, market regulator SEBI had passed an interim order barring Gensol Engineering's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations, including alleged fund diversions and corporate governance lapses. The order by SEBI came after allegations that the company was siphoning off loan funds from their publicly-listed company, Gensol Engineering, for personal use. The probe by Sebi also revealed that the funds acquired through loans on behalf of Gensol to purchase electric vehicles for commercial use were diverted for unrelated purposes. "Some of these funds were then used for purposes unrelated to the purpose/objective of the sanctioned term loans, which included (i) personal expenses of the promoter, including purchase of high-endreal estate; (ii) benefit to the private promoter entities/ transfer offunds to promoters' close relatives;etc," SEBI said in its interim report. Gensol Engineering Limited is engaged in providing solar consulting services, Engineering, Procurement and Construction(EPC) services, and leasing of electric vehicles. SEBI received a complaint in June 2024, relating to the manipulation of share price and diversion of funds from Gensol Engineering and thereafter, started examining the matter. The SEBI final investigation report in the Gensol case is still awaited. (ANI)
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