Gensol Engineering's independent director Arun Menon resigns, decision taken after SEBI's action

Independent director of Gensol Engineering, Arun Menon, has resigned. According to him, the utilization of the balance sheet for other companies' capital expenditure and the high cost of debt are causing doubts regarding the stability of the service.

Menon's resignation comes at a time when, a day earlier on Tuesday, SEBI had banned Gensol Engineering and its promoters - Anmol Singh Jaggi and Punit Singh Jaggi - from the securities market till further orders in the fund diversion and governance lapse case.

In his resignation letter addressed to Anmol Singh Jaggi, one of the company's promoters, Menon said, "There were growing concerns over the leverage of GEL's balance sheet to fund capital expenditure of other businesses and GEL's sustainability of servicing such high debt costs."

The market regulator has directed Gensol Engineering Ltd (GEL) to halt the stock split announced by it. The regulator has also barred the promoters from holding the position of director or key managerial personnel in any listed company.