New Delhi, May 17—In a fresh blow to Gensol Engineering Ltd, Chief Financial Officer (CFO) Jabirmahendi Mohammedraza Aga has resigned with immediate effect, days after the company’s promoters exited following a regulatory crackdown.
In his resignation letter submitted to stock exchanges, Aga cited intense pressure and organizational disarray as key reasons for his departure. He stated that the company is grappling with serious challenges, including multiple investigations by regulatory bodies and the abrupt resignation of top executives.
"The disorganized state of critical data across departments is severely hampering Gensol's ability to respond effectively to these inquiries," Aga noted. He added that the ongoing turmoil has taken a toll on his mental and physical health, impairing his ability to discharge his duties. "I have made the difficult decision to resign, believing it to be in the company's best interest under these trying conditions," he said.
This resignation follows the May 12 announcement that promoters Anmol Singh Jaggi and Puneet Singh Jaggi had stepped down. Anmol served as the Managing Director, while Puneet was a Whole-time Director. Their resignations were prompted by an interim order issued by the Securities and Exchange Board of India (Sebi).
On April 15, Sebi barred the company and its promoters from accessing the securities markets, citing alleged fund diversion and corporate governance failures. The Jaggi brothers were also restrained from holding any directorial or key managerial roles in Gensol until further notice. Additionally, Sebi directed the company to suspend its planned stock split.
The market regulator's action followed a June 2024 complaint concerning share price manipulation and financial irregularities within Gensol. Sebi's preliminary investigation identified the promoters as the primary beneficiaries of the misused funds and pointed to fraudulent fund diversion by the promoters.
The ongoing crisis has cast doubts over Gensol's operational stability and governance structure as the company continues to reel under regulatory scrutiny and executive exits.