Gensol CFO Resigns As Regulatory Investigations Take Toll On Health
Jabirmahendi Mohammedraza Aga’s resignation comes in less than three months following his reappointment to the CFO position in March 2025
(The Corner Office Journal) -- Gensol Engineering Ltd.’s Chief Financial Officer Jabirmahendi Mohammedraza Aga resigned, citing adverse impact on his physical and mental well-being amid the ongoing challenges faced by the company due to regulatory investigations.
The resignation of Aga, who was reappointed to the CFO position in March, is effective from 16 May, Gensol said in a stock exchange announcement.
Gensol -- which is facing an insolvency petition and whose top management has already resigned -- is currently facing significant challenges, with multiple regulatory bodies conducting investigations, Aga said in his resignation letter.
Furthermore, the disorganization of critical data across various departments is “hindering our ability” to effectively respond to the ongoing inquiries due to the lack of a cohesive support system, he added.
“The immense pressure resulting from these circumstances is adversely affecting my physical and mental well-being, leading to a complete loss of focus on my responsibilities,” Aga said. “Therefore, I have made the difficult decision to resign, believing it to be in the best interest of the company under these trying conditions.”
Aga’s resignation comes in less than three months following his reappointment to the CFO position on 7 March 2025 after Ankit Jain left the company due to personal reasons and to pursue other opportunities.
The Spotlight
Gensol has been in the spotlight after SEBI via an interim order in April barred the company’s promoters from the securities market for alleged fund diversions and corporate governance lapses.
On 12 May, Gensol announced the resignation of its promoters -- Managing Director Anmol Singh Jaggi and Whole Time Director Puneet Singh Jaggi -- from the company. The Jaggi brothers resigned due to the direction given under the SEBI’s interim order.
BluSmart Mobility, an e-cab service promoted by Anmol Singh Jaggi, has suspended operations since the SEBI order.
The capital markets regulator has also appointed a forensic accountant and investigator, who will conduct the forensic audit of Gensol’s financial statements from FY22 to FY25.
The forensic audit is being conducted by Raju and Prasad, Chartered Accountants.
In April, Indian Renewable Energy Development Agency Ltd. (IREDA) filed a complaint with the Economic Offences Wing against Gensol, claiming falsified documents, after communications from credit rating agencies.
The company, which has initiated an internal review to examine the matter, has said Gensol promoters diluted their shareholdings without lenders approval, constituting breach of contract.
IREDA, a non-banking financial company, provides financial assistance for setting up projects related to new and renewable energy sources as well as energy efficiency/conservation initiatives.
Insolvency Petition
On 14 May, state-run IREDA also filed an insolvency petition against Gensol under Section 7 of the Insolvency & Bankruptcy Code, claiming a default of 510 crore rupees ($60 million).
During the first hearing at the National Company Law Tribunal (NCLT) yesterday, IREDA’s lawyer sought the appointment of an interim resolution professional (IRP) for Gensol, citing the SEBI’s interim order against the company.
“By virtue of SEBI order, the company is now headless. Directors have walked out, and the company has projects worth crores of rupees. Somebody needs to manage the show. That’s what the SEBI's finding is,” the lawyer had argued.
The NCLT, however, rejected IREDA’s appeal to appoint an IRP at the initial hearing and ordered to issue a notice to Gensol over the insolvency petition.
The tribunal is set to hear the matter on 3 June.
Note: $1 = 85.5644 Indian rupees
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