Gensol Engineering CFO Resigns Amid Regulatory Probes and Executive Exodus
| 2025-05-17
Gensol Engineering’s Chief Financial Officer, Jabirmahendi Mohammedraza Aga, has stepped down less than three months into his role, citing the toll of ongoing regulatory investigations and organisational instability.
Gensol Engineering CFO Jabirmahendi Aga resigns citing multiple regulatory investigations and internal disorder, following top-level exits and insolvency proceedings.
Gensol Engineering’s Chief Financial Officer, Jabirmahendi Mohammedraza Aga, has stepped down less than three months into his role, citing the toll of ongoing regulatory investigations and organisational instability.
Aga submitted his resignation on 16 May, just days after Gensol Engineering’s managing and whole-time directors—Anmol Singh Jaggi and Puneet Singh Jaggi—also vacated their posts. His exit deepens the leadership crisis engulfing the Indian renewable energy firm.
In his resignation letter, Aga expressed concern over a deteriorating work environment driven by widespread regulatory scrutiny. “The company is currently facing significant challenges, with multiple regulatory bodies conducting investigations,” he wrote. “The disorganisation of critical data across departments is hindering our ability to respond effectively to ongoing inquiries due to a lack of a cohesive support system.”
He added that the pressure had negatively impacted his physical and mental well-being, leaving him unable to focus on his responsibilities.
Regulatory Scrutiny Intensifies
Gensol Engineering has been under increasing pressure since the Securities and Exchange Board of India (SEBI), the country’s market regulator, issued an interim order on 15 April. The order barred both the company and the Jaggi brothers from accessing the securities market, citing alleged misuse of funds and corporate governance failures.
According to SEBI, funds earmarked for electric vehicle (EV) procurement had been diverted to entities linked to the promoters and used for personal expenses, including the purchase of luxury real estate and financial transfers to family members. These funds were originally secured through loans from state-backed financial institutions.
In response to the order, Anmol Singh Jaggi and Puneet Singh Jaggi resigned on 12 May. Their resignations followed those of three independent directors—Arun Menon, K S Popli, and Harsh Singh—who also stepped down in the weeks after SEBI’s directive.
Gensol is also under investigation by India’s Ministry of Corporate Affairs for alleged violations of corporate law. The probe includes scrutiny of BluSmart Mobility, a related electric mobility firm.
Legal Proceedings Over Loan Defaults
Amid these developments, the Indian Renewable Energy Development Agency (IREDA) has filed an insolvency petition against Gensol Engineering with the National Company Law Tribunal (NCLT) in Ahmedabad. The petition cites defaults on five loan facilities and claims an outstanding liability of Rs 510 crore (approximately USD 61 million).
IREDA had issued recall and demand notices on 4 May, followed by the invocation of personal guarantees from the company’s promoters on 13 May. Gensol has been directed to respond by the next tribunal hearing scheduled for 3 June.
Gensol reportedly secured loans totalling Rs 977.75 crore (about USD 117 million) from IREDA and Power Finance Corporation (PFC) between financial years 2021–22 and 2023–24. Of this amount, Rs 663.89 crore was allocated for the acquisition of 6,400 electric vehicles. However, only 4,704 vehicles were procured, valued at Rs 567.73 crore, according to supplier Go-Auto.
The company was also expected to contribute 20% equity, placing the expected project outlay at Rs 829.86 crore—leaving an estimated Rs 262 crore unaccounted for.
Appeal to Securities Tribunal
In a regulatory filing on Wednesday, Gensol Engineering confirmed that the Securities Appellate Tribunal (SAT) has allowed it to formally respond to SEBI’s interim order. SEBI has been directed to review the company’s response and issue a final order within four weeks.
The Tribunal, however, did not grant IREDA’s request to appoint an Interim Resolution Professional (IRP) to oversee the company, despite the recent departure of key leadership.
India’s EV Push and Governance Concerns
Gensol Engineering was previously seen as a rising player in India’s electric mobility and renewable energy sectors—key areas of focus for the Indian government’s energy transition efforts. The company’s partnership with BluSmart Mobility and its large-scale EV procurement plans aligned with broader national objectives.
However, the current situation highlights ongoing challenges in corporate governance and accountability within India’s fast-growing renewable sector. Regulatory authorities have ramped up oversight in recent years, especially as state-backed lenders play a pivotal role in financing green infrastructure.
The outcome of the SEBI investigation and the NCLT proceedings could have wider implications for investor confidence in India’s energy transition landscape.
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