Corporate Affairs Ministry aims to complete probe into Gensol Engineering Ltd, related companies in 3-5 months

Separately, the National Financial Reporting Authority (NFRA) is conducting a preliminary enquiry into Gensol Engineering following a reference from the markets regulator Sebi, NFRA chief Ravneet Kaur said.

New Delhi: The Ministry of Corporate Affairs (MCA) is expected to complete its investigation in the Gensol Engineering case related to alleged fund diversion and other irregularities in the next three to five months, official sources said.

The ministry started due diligence into Gensol last month after the market regulator Securities and Exchange Board of India (SEBI) passed an interim order barring the company’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations, including alleged fund diversions and corporate governance lapses.

The company’s promoters have been alleged of siphoning off funds raised through loans by Gensol Engineering for personal use.

At the centre of the controversy is loans taken by Gensol Engineering from two public sector financial institutions – Power Finance Corporation (PFC) and Indian Renewable Energy Development Agency (IREDA).

A senior official, who did not want to be named, said the Ministry of Corporate Affairs is in the process of gathering evidence and would complete the investigation in the next three to five months.

Meanwhile, addressing the annual day event of the Competition Commission of India (CCI), Union Finance Minister Nirmala Sitharaman asked regulators to uphold the principle that “markets must work for the many, not the few.”

“Free and fair markets ensure that no single player can corner resources, suppress choice, or distort price discovery. This benefits our consumers,” she said.

Sitharaman noted that for India, a nation of 1.4 billion people, “ensuring free and fair markets is not merely an economic need, it is a democratic one.”

The Finance Minister also emphasised on the need for ensuring swift and seamless approvals for mergers of companies. “Delays in regulatory clearances can lead to uncertainty, disrupt commercial timelines, and potentially erode the intended value of transactions,” she said.

“The ability of the Commission to strike a balance between regulatory vigilance and a pro-growth mindset will be integral to building a resilient, equitable, and innovation-driven economic framework in India,” the Finance Minister said.