Gensol Engineering

The tribunal agreed that waiting might mean watching evidence evaporate, hence the emergency freeze.

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Gensol Engineering‘s share price has experienced a significant drop in 2025 since the regulatory turmoil faced by its now-defunct electric ride-hailing venture, BlueSmart–under which the promoters of the firm were accused of misappropriating funds. In fresh woes for the firm, the National Company Law Tribunal (NCLT) in Ahmedabad has frozen the company’s bank accounts and lockers, along with those of its promoters and 34 connected entities, due to corporate governance concerns and alleged fund diversion and more, reports Financial Express.

Let us dive deeper into what is happening with Gensol-

-The action, prompted by regulatory concerns about fund diversion and misconduct, involves multiple agencies and a coordinated effort to investigate the company’s financial activities, with a key hearing scheduled for June 3, 2025, to review asset disclosures.-Gensol Engineering’s share price has fallen 92 per cent so far in 2025. This decline follows ongoing corporate governance issues.

-The National Company Law Tribunal (NCLT), Ahmedabad, has taken action against the company. The NCLT has frozen every bank account and locker linked to Gensol, its promoters, and 34 other connected entities.

-Trading in Gensol’s and the promoters securities on both BSE and NSE is suspended until further notice, says CNBC TV-18.

-The order, granted on May 28, mandated immediate action from the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). The goal was to secure cash before it could “vanish into thin air,” as one broker quipped, as per CNBC TV18 report.-Regulators allege a multi-layered scheme of fund diversion, doctored ledgers, and asset sales disguised as routine business moves. The Ministry of Corporate Affairs (MCA) approached the NCLT after preliminary probes hinted at “grave misconduct” by Gensol’s top brass.-The tribunal agreed that waiting might mean watching evidence evaporate, hence the emergency freeze.

What will happen to the assets?

While the NCLT froze liquid assets, the Debt Recovery Tribunal (DRT) in Delhi targeted physical assets. These include bricks, mortar, and steel, plus a fleet of electric vehicles.

The DRT restrained promoters Anmol Singh Jaggi and Puneet Singh Jaggi from selling or shifting any secured assets. A court-appointed officer is preparing to seize hypothecated EVs.

Depositories CDSL and NSDL have simultaneously frozen the promoters’ demat accounts. This blocks any off-market share transfers, according to a CNBC TV18 report.

Investigators say as much as ₹975 crore, originally borrowed for Gensol’s EV subsidiary, may have been siphoned off.

Gensol; a matter of public interest?

Multiple agencies are now working together. These include the SFIO, SEBI, RBI, Income-Tax Department, and MCA. They are calling the case “a matter of public interest.”All eyes now shift to June 3, 2025, when the matter returns to the regular NCLT bench. By then, every respondent must disclose worldwide assets. These assets include the movable, immovable, tangible, and intangible. Any attempt to mortgage, sell, or gift those assets could be deemed contempt of court.