NFRA probes Gensol’s audit books after Sebi flags fraud, ICAI review underway

The transfer follows a reference by the Securities and Change Board of India (Sebi), mentioned Kaur, who additionally helms the competitors regulator. She was talking on the sidelines of an occasion Tuesday.

This marks an growth of the investigation into Gensol, which started with Sebi’s report final month.

Officers mentioned the NFRA investigation could be restricted to the function of auditors, if any, within the alleged fraud at Gensol and whether or not audit requirements have been adequately adopted.

Individually, the company affairs ministry is planning to conclude its probe into the alleged company governance lapses at Gensol and about 18 associated entities, together with BluSmart Mobility, in 3-5 months, mentioned a senior authorities official.

Dwell Occasions

Institute of Chartered Accountants of India (ICAI) president Charanjot Singh Nanda informed ET final month that the institute would evaluation the FY24 monetary statements and statutory audit experiences of Gensol and BluSmart.

ICAI Probe

If ICAI’s Monetary Reporting Assessment Board finds that the monetary statements of the related entities usually are not “true and truthful”, it could refer the case to the ICAI’s disciplinary committee for subsequent motion in opposition to the auditors.

In April, Sebi had barred Gensol’s promoters—brothers Anmol and Puneet Jaggi—from accessing inventory markets and ordered a forensic probe into their listed renewable power agency.

An interim report by the capital markets regulator had pointed to fund diversion by the brothers and governance failures throughout the firm. The brothers face allegation of misutilisation of time period loans availed of by Gensol from state-run IREDA and PFC.

Gensol’s share worth has crashed by over 45% because the launch of Sebi’s interim report on April 15. The shares closed at Rs 70.99 apiece on the BSE on Tuesday.

As per the markets regulator, Gensol had secured Rs 977.75 crore in loans, of which Rs 663.89 crore was for use particularly for the acquisition of 6,400 electrical autos (EVs). These autos have been to be leased to BluSmart, a associated occasion.

However Gensol admitted in its response to Sebi in February that it had procured solely 4,704 EVs.