Gensol Engineering to Cooperate with Sebi Forensic Audit

New Delhi, Apr 16 (PTI) Gensol Engineering on Wednesday said the company will fully cooperate with the forensic audit to be conducted at the behest of the Securities and Exchange Board of India (Sebi).

As directed in the interim order, Sebi will appoint a forensic auditor to thoroughly examine the books of accounts of the company and its related entities, Gensol Engineering said in an exchange filing.

"Gensol will fully cooperate with the forensic audit to be conducted at the behest of Sebi," it added.

The company further said that complying with Sebi's directions in the interim order, Anmol Singh Jaggi and Puneet Singh Jaggi (promoters of the company) have restrained from holding the position of a director or a Key Managerial Personnel in Gensol until further orders.

They are no longer participating in the management of the company as per Sebi's instructions, effective immediately.

Gensol Engineering's promoters treated the listed company as a proprietary firm, diverting corporate funds to buy a high-end apartment in The Camellias, DLF Gurgaon, splurging on a luxury golf set, paying off credit cards, and transferring money to close relatives, Sebi said in its interim order.

The capital markets regulator on Tuesday barred Gensol Engineering and promoters -- Anmol Singh Jaggi and Puneet Singh Jaggi -- from the securities markets till further orders in the fund diversion and governance lapses case.

Further, the markets watchdog directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it.

The order came after the Securities and Exchange Board of India (Sebi) received a complaint in June 2024 relating to the manipulation of share price and diversion of funds from GEL and thereafter started examining the matter.