Three independent directors at Gensol tender resignations amidst regulatory heat

Independent directors look to off-board Gensol as the company spirals deeper into regulatory scrutiny after an interim order from SEBI exposed a web of misutilised funds and fraudulent transactions by its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi.

According to BSE filings, Arun Menon, Harsh Singh, and Kuljit Singh Popli have all tendered their resignations at the solar solutions provider company. The resignation comes almost a month after Rajesh Jain left the firm. Gensol’s board now consists of only three members—the Jaggi brothers and Vibhuti Patel.

In his resignation letter, addressed to members of the board, Menon said, “I would like to take you back to last year, July / August of 2024, when I had tried reaching you to seek clarity on the debt position of the company, and had also offered assistance to reduce the interest cost through a debt restructure route. While you had messaged me that you would call back, it never progressed.”

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He also said that while he had expressed his interest in resigning last year, he was told to hold on till the initial public offering (IPO) of Matrix Gas and Renewables, a natural gas aggregator founded by the Jaggi brothers, was concluded. Menon also sits on this company’s board.

Singh, on the other hand, cited professional commitments, adding that he believed a more experienced person is required to steer the company through these times.

Popli added that while he hoped for positive developments within the company, given the way things have unfolded, he no longer believes he is in a position to continue on the company’s board.

The resignations also come on the heels of Gensol stating that both Anmol and Puneet will be stepping away from their managerial positions at Gensol after SEBI’s interim order instructed them to do so.

However, the company denied being in discussions or entering into any agreements pertaining to a merger, acquisition, or any other transaction that had not been previously disclosed to public bourses.

Meanwhile, EV ride-hailing startup BluSmart, which had leased a major chunk of its vehicles from Gensol, is struggling to stay afloat after funding talks fell through earlier this year. The company has since halted operations and is presently onboarding its cabs onto rival Uber’s platform.