Gensol Engineering promoters on Wednesday have been barred by the Debt Recovery Tribunal, Delhi, from selling or transferring ownership of the company's secured assets. The order follows a petition filed by state-owned Indian Renewable Energy Development Agency.
“...concerned defendants are hereby restrained from selling, transferring, alienating, damaging, removing and disposing off or otherwise creating third party interest with regard to secured assets, movable & immovable, as detailed in the said paragraphs, until further orders,” said the eight-page DRT order dated May 28.
The tribunal has also asked the court appointed officer to take "possession of hypothecated vehicles".
The assets which the tribunal refers to are primarily electric vehicles that were financed by non-banking financial companies including IREDA and Power Finance Corp.
The Demat accounts of Gensol promoters are also required to be freezed, said the DRT, adding that directions in this regard will be issued to the depositories. “If any Demat accounts exist, NDSL and CDSL are directed to freeze the account and file the details of shares with this tribunal,” the order stated.
Gensol Engineering has been facing troubles since the Securities and Exchange Board of India barred the company and its promoters Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities market. The regulator accused them for fund diversion for personal motives.
The company's Chief Financial Officier Jabirmahendi M Aga also recently resigned, citing regulatory challenges the company has been facing now. The company is also under the scanner of the National Financial Reporting Authority.
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