They said the ministry is looking at the materials available in the public domain, as well as certain information received before contacting the issue, adding that decisions are expected to be made within two weeks.
Earlier this week, the Securities and Exchange Commission of India (SEBI) banned the sponsors of renewable energy companies Anmol brothers Anmol and Puneet Jaggi, rejecting the capital market in terms of alleged fund transfers and document forgery. Regulators also ordered forensic reviews. Soon, Jaggis promoted all-electric vehicle cycling service Blusmart began closing its operations.
“The materials available in the public domain and some information received by the ministry are under study,” a senior government official said.
Focus on fund transfer
“Since the report shows corporate governance issues, a call will be held once the preliminary assessment of the Department of Corporate Affairs also shows corporate governance issues, whether an investigation or not should be initiated,” the official said.
“The Ministry will focus on determining whether there are any fund transfers used to promoters’ personal expenses, such as purchasing luxury apartments, transfers to relatives and investments, to benefit private entities owned by the promoters from a week or two appeal. Matters related to fraud often hand over fraud that requires careful investigation to the Office of Serious Fraud Investigation, the Department’s Investigation Department. The Department’s weapons have not yet issued any notice to any company or seek any information from them. Once such order is issued, this is done by the District Directors’ Office.
At the heart of the controversy is the alleged misunderstanding of the term loans used by the state-run Renewable Energy Development Authority and the electricity finance company Gensol.
According to SEBI, the company’s loans totaled Rs 97,777.5 billion, of which Rs 66.389 billion meant specifically for the purchase of 6,400 electric vehicles (EVS). The electric vehicles were purchased and then rented to affiliate Blusmart.
However, in a response submitted to Capital Markets regulator in February, Gensol acknowledged that despite receiving 6,400 evs of funds, only 4,704 electric vehicles have been purchased so far. This was confirmed by EV supplier Go-Auto, which confirmed that 4,704 units were offered, totaling Rs 56,773 crore.
Given that Gensol also needs to provide a 20% equity contribution, the total expected spending for electric vehicles is approximately Rs 82.986 crore. People say that through this calculation, Rs 262.13 crore has not been divided yet.
