New -Delhi: A Company Court allowed the central government to attach the bank accounts and cabinets of Gensol Engineering Ltd, its ten subsidiaries and various individuals after investigations by various agencies and regulators who revealed systemic fraud. “The funds, raised for specific purposes by the businesses, were illegally transferred to various related parties, in the major violation of the provisions of the Companies Act, 2013,” the National Company Law Tribunal (NCLT) said in its order on Wednesday. “The pattern of illegal fund division, misrepresentation of assets and manipulation of share prices has caused public shareholders, creditors and other stakeholders irreparable damage.” The order is based on the findings of investigations conducted by the Ministry of Corporate Affairs (MCA), Securities and Exchange Board of India (Sebi) and the Serious Fraud Investigation Office (SFIO). The MCA has shifted the tribunal for ten interim measures in the case. The NCLT noted the government’s submission that Gensol Engineering, along with other respondent companies and associated individuals, “committed serious violations of corporate management norms”. Inquiries were sent to Gensol by e -mail, and founders Anmol Singh Jaggi and Puneet Singh Jaggi remained unanswered on Wednesday at the time of the publication. The tribunal noted “serious allegations of fraudulent actions, including the derivation of company funds by the promoters of Gensol Engineering and related entities”, as well as the allegations of violating corporate management norms, manipulation of financial statements and illegal alienation from company assets, according to the order. “The investigative and regulatory findings of the Ministry of Corporate Affairs, Sebi and SFIO Prima facie support the plaintiff’s demands of systemic fraud involving considerable public interest,” NCLT said and granted the interim relief sought by the government. The tribunal will hear the case next on June 3. Personal liability One of the provisions of the Companies Act called on the ministry is Article 339, which allows certain persons such as directors, managers or other officers, who are a fraud, personally responsible, without any limitation of liability, for the whole or any of the debt or other obligations of the company. The ministry also sought a guidance to the Reserve Bank of India (RBI) and the Indian Banks Association to freeze bank accounts and cabinets owned by the respondents and attach the same on behalf of the government, which was granted, showed the order. The interim relief ensured by the government includes limiting the respondent individuals and businesses to delay, alienate or create a lien or a third party interest on their movable or immovable properties, cabinets and securities. Insolvency pleads the state-owned Indian Renewable Energy (IREDA) Agency (IREDA) earlier this month filed an insolvency application against Gensol Engineering Ltd for a £ 510 crore default. Ireda also approached the economic offense wing (Eow) of the Delhi police. The case came to market regulator Sebi on April 15 in an interim order that impeded Gensol’s promoters – Anmol Singh Jaggi and Puneet Singh Jaggi – from the trade in the security market, and to keep any important management position in gensol or any other list of a forensic audit. The investigation of Sebi found that the founders of the Cleantech Company allegedly allegedly loans from state -run lenders Power Finance Corp. (PFC) and Ireda set off for unrelated and personal expenses. PFC declared its loan exposure to Gensol Engineering as fraud after its preliminary findings and approached the Eow. The lender shooter said in the fourth quarter of the FY25, which was the outstanding loan amount on the outstanding loan amount, in a recent CRORE, PFC chairman and managing director of the PFC, said in a recent crore, the lender in the fourth quarter of the FY25 (TRA) said in the fourth quarter of the FY25. She said that PFC will consider recovery options through the insolvency process if it is not restored by other methods, while adding that all options, including the repair of the debt recovery tribunal (DRT), are on the table.
NCLT allows Govt to attach Gensol’s accounts, cabinets | Company Business News
