Two more independent directors at Gensol Engineering resigned on Thursday amid increasing troubles for the company which is facing allegations of misuse of funds.
Harsh Singh and Kuljit Singh Popli tendered their resignations after independent director Arun Menon resigned.
The three resignation within a span of few hours came a day after SEBI on Tuesday barred Gensol Engineering and its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from the securities markets till further orders in a fund diversion and governance lapses case.
“Pursuant to Regulation 30 of SEBI Listing Regulations, we wish to inform you that Mr. Harsh Singh and Mr. Kuljit Singh Popli, has tendered their resignation as the Independent Director of the Company, with immediate effect,” said the company in regulatory filing.
In the resignation letter addressed to Anmol Singh Jaggi, independent director Harsh Singh said that he was aware that his decision that comes at a time when the Company is facing a difficult time and added, “However, my professional commitments at Patna are coming in the way of my contributing to the company in a useful manner.”
Further stating that there was no other reason for his resignation, Harsh Singh added, “I hope and wish that the company is able to rise over the current tides. My admiration for your leadership and resilience remains unwavering.”
Whereas, writing to Board of Director, Kuljit Singh Popli said that recent developments and news in the media pained me immensely.
“I was hoping for some positive developments to happen past one month however the way things have unfolded and come to light I am not in a position to continue as Independent Director,” he added.
He further added, “I was hopeful that the company that has grown so fast and had been enjoying good reputation and good will, will continue to grow and create value for all stakeholders and governance issues as brought out will be addressed. However that has not happened.”
Independent director Arun Menon resigns
Tendering his resignation, Arun Menon tendered said that there was growing concern on the leveraging of GEL balance sheet to fund the capex of other businesses; and the sustainability of servicing such high debt costs by GEL.
According to Sebi’s interim order, Gensol Engineering’s promoters treated the company as a proprietary firm.
