Gensol Engineering is now all in the spotlight because of alleged financial fraud, regulatory crackdowns, and a sudden halt in ride bookings. The story of Gensol Engineering and its sister concern BluSmart has turned now to a cautionary tale of corporate missteps.
The Securities and Exchange Board of India (Sebi) recently dropped a bombshell with its interim order dated April 15.
SEBI Chief: “Our Job Is to Find and Punish”
SEBI Chairperson Tuhin Kanta Pandey addressed the matter head-on. As per the India Today report, he said, “There will be companies like Gensol in the system. Sebi’s job is to find and punish them.
Gensol Engineering and SEBI’s clampdown
The market regulator alleged that Gensol Engineering’s promoters brothers Anmol and Puneet Singh Jaggi used company funds like their own personal wallet.
From buying a luxury apartment in DLF Camellias in Gurgaon to a lavish Rs 26 lakh golf set, Sebi’s investigation revealed serious lapses in financial discipline. It called it a “complete breakdown” of governance.
In response to the order, both brothers stepped down from their roles at the company. Gensol Engineering in a regulatory filing, said that the Jaggi brothers are “no longer participating in the management of the company” as per SEBI’s directive.
BluSmart comes to a sudden halt
BluSmart, the ride-hailing startup co-founded by the Jaggi brothers, abruptly suspended its services on Thursday. Users in Delhi-NCR, Bengaluru, and Mumbai were left stranded, unable to book cabs through the app.
The company sent out an alert: “We’ve decided to temporarily close bookings on the BluSmart app… We will initiate a refund within the next 90 days if services do not resume before then.”
Gensol Engineering share price
Gensol Engineering shares tumbled 5% on Thursday, hitting the lower circuit limit for the second straight day after Sebi’s action against the company and its promoters sent shockwaves through the market.