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Bloomberg Quint
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Gensol's Trouble Mounts: NCLT Allows Freezing Of All Its Bank Accounts
- The National Company Law Tribunal in Ahmedabad has ordered the freezing and attachment of all bank accounts and lockers belonging to Gensol Engineering Ltd. and its associated entities in response to serious allegations of corporate fraud and financial misconduct by the Ministry of Corporate Affairs.
- The tribunal allowed urgent interim reliefs sought by the government, enabling the Reserve Bank of India and Indian Banks’ Association to secure the financial assets of Gensol and related parties, including freezing of accounts and lockers to prevent further dissipation of assets or tampering of evidence.
- On April 15, the Securities and Exchange Board of India barred Gensol Engineering promoters Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities market due to findings of diverted funds in a loan-financed electric vehicle purchase scheme, leading to concerns of fund misuse.
- Credit rating agencies downgraded Gensol's debt to default status amid concerns of over Rs 200 crore being unaccounted for in the electric vehicle purchase scheme, and the company submitting fabricated debt servicing conduct letters, leading to orders for forensic audits and further investigations.
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