ICAI to Scrutinize Gensol and BluSmart Financial Statements

The Institute of Chartered Accountants of India (ICAI) has announced a detailed review of the financial statements of Gensol Engineering Ltd and BluSmart Mobility Pvt Ltd for the fiscal year 2023–24. This decision comes in the wake of serious allegations regarding financial misconduct and governance lapses within these companies.

Regulatory Scrutiny Intensifies

Charanjot Singh Nanda, president of ICAI, confirmed the review, highlighting the role of the Financial Reporting Review Board (FRRB) in assessing compliance with accounting standards and auditing practices. The FRRB's examination will also cover adherence to the Companies Act, 2013, and guidelines issued by the Reserve Bank of India (RBI).

Allegations and Actions

Gensol Engineering faces regulatory action after Sebi banned its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, for allegedly diverting loan funds for personal use. BluSmart Mobility, also promoted by Anmol Singh Jaggi, is under similar scrutiny. The Ministry of Corporate Affairs is considering further actions based on Sebi's findings, which could include investigations by the Serious Fraud Investigation Office (SFIO).