SAT Rejects Interim Relief for Gensol in SEBI Fraud Case 

Gensol Engineering, a renewable energy and electric mobility firm, has been denied interim relief by the Securities Appellate Tribunal (SAT) in a high-stakes case involving alleged fund diversion and document forgery. The case stems from a SEBI order issued last month, which barred Gensol, its promoters, and directors from the securities market. As per news reports, the company has been given two weeks to respond to SEBI’s charges. 

SEBI Alleges Fund Misuse and Fraudulent Practices 

SEBI’s case centers around a ₹978 crore term loan secured by Gensol from public-sector lenders IREDA and Power Finance Corporation (PFC). While ₹664 crore was designated for the purchase of 6,400 electric vehicles to be leased to BluSmart Mobility, only 4,700 were procured for ₹567 crore. According to SEBI’s claims, the remaining funds were siphoned off for unrelated uses, including real estate and insider-linked entities, with ₹262 crore still unaccounted for. 

SAT Sets 2-Week Deadline for Gensol’s Response 

Despite Gensol’s request for relief from SEBI’s market ban, SAT has mandated that the company must respond to the allegations within 2 weeks. A final ruling from SEBI will follow. The ongoing scrutiny also includes investigations from the Ministry of Corporate Affairs (MCA) and the Economic Offences Wing (EOW). 

Also Read: Gensol Files Appeal with SAT Against SEBI’s Interim Order 

Lenders Accuse Gensol of Submitting Forged Certificates 

IREDA and PFC have accused Gensol of providing fake lender certificates to falsely claim timely debt repayments. These certificates were reportedly used to mislead investors, credit rating agencies, and regulators. Both lenders denied issuing such documentation and confirmed Gensol had defaulted on multiple payments. 

Regulatory and Reputation Fallout for Gensol and BluSmart 

The issue surfaced after credit rating agencies downgraded Gensol, following defaults linked to BluSmart Mobility. As an interim measure, SEBI has barred promoter Anmol Singh Jaggi from holding any directorial or managerial roles in listed companies during the investigation. 

Conclusion 

Gensol now faces heightened scrutiny from SEBI, EOW, and MCA, with 2 weeks to present its defense. The outcome of this case could significantly impact the firm’s operations, reputation, and standing in the renewable energy and EV sectors. 

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