Gensol crisis: Jabirmahendi Mohammedraza Aga resigns as CFO

New Delhi: Days after the resignation of Gensol promoters, Chief Financial Officer (CFO) Jabirmahendi Mohammedraza Aga has also quit the crisis-hit company with immediate effect.

In his resignation letter, available on stock exchanges, Aga said Gensol Engineering is currently facing significant challenges, with multiple regulatory bodies conducting investigations and the top management resigning from their respective roles.

Furthermore, the disorganization of critical data across various departments is hindering the company's ability to effectively respond to the ongoing inquiries due to lack of a cohesive support system, Aga said.

"The immense pressure resulting from these circumstances is adversely affecting my physical and mental well-being, leading to a complete loss of focus on my responsibilities. Therefore, I have made the difficult decision to resign, believing it to be in the best interest of the company under these trying conditions," he said.

According to an exchange filing on May 12, Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi resigned from the company following market regulator Sebi's interim order. Anmol held the post of Managing Director while Puneet was a Whole-time Director.

On April 15, the Securities and Exchange Board of India (Sebi) barred Gensol Engineering and the two promoters from the securities markets till further orders in a fund diversion and governance lapses case.

The regulator also debarred the Jaggi brothers from holding the position of a director or key managerial personnel in Gensol until further orders. It also directed Gensol Engineering Ltd (GEL) to put on hold the stock split announced by it.

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

"The prima facie findings have shown mis-utilisation and diversion of funds of the company (GEL) in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds," the Sebi order said.