Crisis deepens as more directors resign amid Gensol fund diversion case

Gensol crisis: The fallout stems from a Sebi order accusing Anmol Jaggi and his brother Puneet of misusing public funds

Troubles at Gensol Engineering Ltd intensified this week after two more independent directors resigned, just days after India’s markets regulator accused the company’s co-founders of serious financial misconduct. Harsh Singh and Kuljit Singh Popli stepped down with immediate effect, the company said in an exchange filing on Thursday, marking the third high-profile exit in as many days. 

Arun Menon, another independent director, had resigned earlier this week.

 

The fallout stems from a damning order by the Securities and Exchange Board of India (Sebi), which accused Anmol Jaggi and his brother Puneet— co-founders of Gensol—of misusing company funds. Sebi alleged that money earmarked for Gensol’s electric vehicle (EV) business was diverted to purchase a luxury apartment, among other personal and family expenses.

 

As a result, the Jaggi brothers have been barred from participating in the securities market, holding any directorial or key managerial positions, or trading in listed securities. Sebi’s order also mandates a forensic audit of Gensol’s operations, citing a ‘complete breakdown’ of governance and internal controls, accusing the promoters of using public funds as a ‘personal piggybank’.

        

  Anmol Jaggi, who also co-founded ride-hailing firm BluSmart and serves as Gensol’s managing director, is at the centre of the controversy. BluSmart, seen as an emerging competitor to Uber in India’s EV mobility space, has also come under strain.

 

On Thursday, the company suspended ride bookings through its app and announced a delay in refunding user wallet balances. Originally promising to return funds within six days, reports indicate that BluSmart has now extended the refund timeline to 90 days if services do not resume. 

Popli, in his resignation letter, cited growing concerns over governance issues. He wrote that although he had been optimistic about the company’s future, recent developments had made it untenable for him to continue. “The way things have unfolded and come to light, I am not in a position to continue as an independent director,” he said, according to a report by Reuters.

   

 

Investor confidence in Gensol has plummeted. Its shares dropped another five per cent on April 17, extending a staggering 84 per cent decline since the start of the year. Markets remained closed on April 18 for Good Friday.

 

Meanwhile, BluSmart’s previously reported plans to operate through a hybrid model—including listing services on Uber’s app—are now being re-evaluated amid the ongoing turmoil, as earlier reported by Business Standard. Several customers, left stranded after ride services were abruptly paused, have voiced their frustration on social media, especially over the delay in refunds.