Gensol Engineering’s CFO Jabirmahendi Aga steps down, cites regulatory investigations

Crisis hit, Gensol Engineering’s Chief Financial Officer (CFO) Jabirmahendi Mohammedraza Aga has resigned from the company. Company in an exchange filing said, Jabirmahendi Mohammedraza Aga has resigned vide his resignation letter dated 16.05.2025 from the post of Chief Financial Officer. He was appointed as CFO of the company in March this year, after then CFO Ankit Jain resigned.

In his resignation letter Aga mentioned, the company is currently facing significant challenges, with multiple regulatory bodies conducting investigations. The top management has already resigned and the disorganization of critical data across various departments is hindering the ability to effectively respond to the ongoing inquiries due to a lack of a cohesive support system and this is affecting his physical and mental well-being.

On May 12, Managing Director Anmol Singh Jaggi and whole-time Director Puneet Singh Jaggi had resigned. Market regulator Securities and Exchange Board of India (SEBI) in its interim order dated April 15 had barred Jaggi brothers from holding key positions in the company. SEBI has also barred the Gensol and Jaggi brothers from accessing the securities market until further notice.

Earlier three independent directors, Arun Menon, KS Popli and Harsh Singh resigned in quick succession after the SEBI interim order.

Lender to the company Indian Renewable Energy Development Agency (IREDA) has dragged the Gensol Engineering to National Company Law Tribunal (NCLT), Ahmedabad. Company has to file its reply by next hearing on June 3. IREDA filed petition against the company in respect of the defaults and potential defaults under the five loan facilities availed by the Gensol Engineering.

Prior to filing of the petition, the loan recall notices, and demand notice were sent by IREDA to the company on May 4, to recall the entire sanctioned amount for some of the facilities and to demand repayment of the outstanding dues for other facilities. Subsequently, the personal guarantee of the promoters was invoked by IREDA on 13th May. IREDA has claimed Rs 510 Cr in default by the company.

Gensol secured Rs 977.75 crore in loans from IREDA and PFC between FY22 and FY24. Of the loan, Rs 663.89 crore was meant for purchasing 6,400 EVs. However, Gensol admitted to acquiring only 4,704 EVs, worth Rs 567.73 crore, as confirmed by supplier Go-Auto.

Given that Gensol was also required to provide 20 per cent equity contribution, the total outlay should have been Rs 829.86 crore, leaving an unaccounted-for amount of Rs 262.13 crore.

The Sebi probe found that funds meant for EV purchases were often routed back to entities linked to Jaggi brothers.

Some of the funds were used for personal expenses of the promoters, such as the purchase of a luxury apartment, transfers to close relatives, and investments benefiting private entities owned by the promoters.

Ministry of Corporate Affairs is also conducting probe into the affairs of Gensol Engineering and BluSmart Mobility for alleged violations of companies law.

Moneycontrol had reported on April 4 that company may come under SEBI investigation after sudden downgrading by rating agencies and allegations of falsified documents.