Corporate Affairs Examines Gensol Engineering Scandal Following SEBI Order

The Corporate Affairs Ministry is poised to take action against Gensol Engineering following SEBI's interim order. The company's promoters face market bans over allegations of financial misconduct, including fund siphoning and misleading investors. The Ministry is reviewing the case under the Companies Act, 2013.

The Corporate Affairs Ministry has announced plans to take necessary measures against Gensol Engineering. This development follows an interim order by market regulator SEBI, which cited multiple violations by the company.

Last week, SEBI barred Gensol Engineering's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities market. They face accusations of siphoning loan funds for personal use, casting a shadow over the company's corporate governance.

The Ministry of Corporate Affairs (MCA) stated that it is currently scrutinizing the SEBI order, leveraging its powers under the Companies Act, 2013. Possible actions include inspection by the Registrar of Companies and an investigation by the Serious Fraud Investigation Office if warranted.

(With inputs from agencies.)