Two more Gensol's independent directors resign, decision after SEBI starts action against co-founders

Two independent directors of the troubled company Gensol Engineering have quit. On Thursday, the company released this information. To date, three have left the company following the action by SEBI on the company's founder and his brother. Regulators have charged the founders of the company with misuse of funds. The company is charged with using funds for one of its electric vehicle-focused subsidiary companies to purchase a luxury apartment.

The Securities and Exchange Board of India (SEBI) this week banned Anmol Jaggi and his brother Puneet from the stock market. SEBI ordered a forensic audit of solar power company Gensol, which procured electric vehicles for BluSmart.

BlueSmart, a taxi service provider considered a rival to Uber, was co-founded by Anmol, who is also the managing director of Gensol. "Harsh Singh and Kuljit Singh Popli have resigned as independent directors with immediate effect," Gensol said on Thursday. Earlier, another independent director of the company, Arun Menon, had also resigned.

Popli said in his resignation letter, "...the way things have unfolded and come to light, I am not in a position to continue as an independent director." Popli said, "I had hoped that the company which has grown so fast and has a good reputation and goodwill would continue to grow further... and the governance issues that have come to the fore would be addressed. However, that did not happen."

BlueSmart also said on Thursday that it has suspended its operations with a decision to "temporarily stop bookings" on its app. Gensol, Anmol Singh Jaggi and Punit Singh Jaggi have not yet responded to SEBI's allegations.