SFIO will investigate Gensol case! – SFIO will Investigate Gensol Case

The government is considering starting an inquiry from the Serious Fraud Investigation Office (SFIO) in the Jansol engineering case. Sources said that the SFIO could also investigate against the promoters of the company. The source said that the option of conducting an inquiry from the SFIO is being considered. Soon a decision will be taken on this.

Meanwhile, a top government official said that the Ministry of Corporate Affairs is investigating the amount of money in Jansol Engineering through its Director General and Company Registrar Office. The official said that the ministry will take further steps after the report of Director General and Company Registrar Office.

Last week, the Securities and Exchange Board of India (SEBI) said that there was no natural decline in the stake of the promoters in Jansol engineering, but it was reduced under a well-planned conspiracy. SEBI said that the promoters had resorted to fake revelations, illegal transactions and rigging of money to reduce their stake, causing their stake almost negligible. Company law experts said that after this episode, the debate could intensify that compulsory board evaluation and performance etc. should be reviewed as compliance in high risk enterprises.

Managing partner Sonam Chandwani at KS Legal and Associates said, “After this development, the principle prescribed in the Satyam case is stressed that the responsibility of the auditor is not limited to keeping records only but it is also their responsibility to report for fraud and irregularities under Section 143 of the Companies Act.” For some time, many startup units have been in discussion for the wrong reasons. The urge to obtain evaluation, pressure from investors and unfair behalf of founders have been responsible for them. Chandwani said, ‘In the name of big thinking, they are glorified more than to test startup founders. The work of the board is not to celebrate but keep an eye on.

Law experts say that negligence has been done by the auditor in this entire case. He said that the negligence by the auditor in monitoring irregularities in the transaction of fake letters and money transactions between Jansol and Blussmart makes a case of professional behavior under Section 132 of the Company Act. He said that this also leads to the matter under the jurisdiction of National Financing Reporting Authority. Sriram Subramaniam of INGWAR Research says, “In June 2024, several months before the case, SEBI complained to SEBI. But it seems that SEBI has come into action only after raising the matter from the rating agencies.

First Published – April 20, 2025 | 10:31 pm IST