A day after coming under the lens of the Securities and Exchange Board of India (Sebi), Gensol Engineering announced the immediate resignation of its independent director, Arun Menon.

In his resignation letter addressed to promoter Anmol Singh Jaggi, Menon expressed concern, saying, “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.”

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Notably, SEBI has removed Gensol Engineering Limited (GEL) promoters Anmol Singh Jaggi and Puneet Singh Jaggi from holding any directorship post in the company. The regulator has debarred the two brothers from accessing the market.

Sebi, in its interim order, explained how loans taken for buying new electric vehicles (EVs) for BluSmart were diverted by the duo for personal use, including buying a luxury apartment in Gurgaon.

In a regulatory filing, Gensol confirmed Menon’s resignation, noting, “Consequently, he shall also cease to be a member of various committees of the company.”

Menon said that his resignation is due to constraints imposed by his current employer and his belief that he was “adding limited value to the company.”

In his letter, Menon referred to efforts he made in mid-2024 to engage with the company on its financial health.

“I would like to take you back to last year, July/August of 2024, when I had tried reaching you to seek clarity on the debt position of the company, and had also offered assistance to reduce the interest cost through a debt restructuring route. While you had messaged me that you would call back, it never progressed,” he wrote.