Corporate Affairs Ministry Launches Investigation into Gensol Engineering and BluSmart Mobility

Investigation Initiated by Corporate Affairs Ministry

New Delhi: The Ministry of Corporate Affairs has initiated an investigation into Gensol Engineering and BluSmart Mobility due to suspected breaches of corporate law, as reported by officials.

Gensol Engineering has attracted regulatory scrutiny for alleged misallocation of funds and governance issues. This follows an order from the Securities and Exchange Board of India (Sebi) in April, which prohibited the company's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities market due to multiple infractions.

BluSmart Mobility, a ride-hailing service, is also associated with Anmol Singh Jaggi.

Officials disclosed that the ministry mandated the investigation last week under Section 210 of the Companies Act, 2013.

This section empowers the ministry to investigate a company's affairs for various reasons, including public interest.

Previously, the ministry indicated it would take appropriate measures after reviewing the Sebi order.

The Sebi order, issued on April 15, raised alarms about the Gensol promoters allegedly diverting loan funds from their publicly traded company for personal expenses, highlighting serious concerns regarding corporate governance and financial integrity.

Additionally, the Institute of Chartered Accountants of India (ICAI) is expected to finalize its review of Gensol Engineering Ltd and BluSmart Mobility's financial statements within six months.

The Financial Reporting Review Board (FRRB) of ICAI is currently assessing the financial records of both companies for the fiscal year 2023-24.

The FRRB's role includes evaluating compliance with Accounting Standards, auditing standards, and the provisions of the Companies Act, 2013.

Moreover, the FRRB checks adherence to various accounting and auditing guidelines, as well as directives from the Reserve Bank of India (RBI).

Gensol is also under investigation by the Enforcement Directorate (ED).