New Delhi: The Ministry of Corporate Affairs has initiated a probe into the affairs of scam-hit Gensol Engineering and BluSmart Mobility for alleged violations of companies law, said officials. Gensol Engineering came under the scanner for alleged fund diversions and corporate governance lapses after SEBI passed an order in April, barring the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. BluSmart Mobility, which offers ride-hailing services, is promoted by Anmol Singh Jaggi.
The officials said on Tuesday the ministry ordered an investigation against the companies last week under Section 210 of the Companies Act, 2013.
Section 210 vests powers with the government to order a probe into the affairs of a company on various grounds, including in public interest. The Corporate Affairs Ministry had earlier said it would take necessary action in the matter after examining the SEBI order. Meanwhile, the Institute of Chartered Accountants of India (ICAI) is likely to complete the review of the financial statements of Gensol Engineering Ltd and BluSmart Mobility in six months.
ICAI's Financial Reporting Review Board (FRRB) is reviewing the financial statements of the two companies for the financial year 2023-24. FRRB conducts the review of financial statements of companies to assess compliance with Accounting Standards, Standards on Auditing, Schedule II and III of the Companies Act, 2013, among others. Also, FRRB assesses compliance with various guidance notes on accounting and auditing, and master circulars/directions issued by the Reserve Bank of India (RBI). Gensol is also being probed by the Enforcement Directorate (ED).