Mumbai: A Delhi court has allowed interim relief sought by Puneet Singh, co-founder, Gensol Engineering Ltd, the company and its affiliate BluSmart for usage of defamatory words which are unsubstantiated or unverified.
The court has however clarified that the order shall not have any bearing on the merits of the matter and shall not be construed to restrain any person from reporting about investigation and court proceedings in relation to the allegations so long as it is fair and accurate reporting based on duly substantiated, conclusive and verified material.
Singh was represented by his advocate Ayush Jindal. Jindal had argued that the publication contained reckless innuendos, distorted facts, prejudicial implications thereby violating plaintiffs rights guaranteed under Articles 19 & 21 of Constitution of India. It is also stated that the defamatory material constitutes an egregious assault upon the personal and professional reputation.
The court while granting the interim relief opined that Court very much understands and recognises that there is freedom of speech and expression under Articles 19(1)(a) of the Constitution of India, however, these are not absolute rights but have limitations contained within itself under Article 19(2) of the Constitution.
The Ministry of Corporate Affairs, the National Financial Reporting Authority (NFRA) and the Enforcement Directorate are looking into the books of Gensol Engineering following fraud allegations
In April, Sebi banned the promoters of renewable energy company Gensol Engineering Ltd, brothers, Anmol and Puneet Jaggi, from the capital markets over alleged fund diversion and document falsification. The regulator also ordered a forensic investigation. Soon thereafter, BluSmart, an all-electric vehicle ride-hailing service promoted by the Jaggi brothers, began shutting its operations.
ED’s Fema case is focusing on whether funds to the tune of Rs 200 crore routed through a car dealer and cycled back to promoter-linked entities were in contravention of FEMA norms. Some of it was used for unrelated personal expenses, including buying luxury real estate.
At the centre of the controversy is the alleged misutilisation of term loans availed by Gensol Engineering Ltd from state-run Indian Renewable Energy Development Agency and Power Finance Corporation. According to Sebi, the company secured a total of Rs 977.75 crore in loans, of which Rs 663.89 crore was meant specifically for the purchase of 6,400 electric vehicles (EVs). These EVs were procured by the company and subsequently leased to BluSmart, a related party.
However, in a response submitted to Sebi in February, Gensol Engineering admitted that it had procured only 4,704 EVs till date, while it had received funding for 6,400 EVs. This was corroborated by Go-Auto Private Limited, the EV supplier, which confirmed delivering 4,704 units to the company for a total consideration of Rs 567.73 crore.
Given that Gensol Engineering was also required to provide an additional 20% equity contribution, the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation, Rs 262.13 crore remains unaccounted for, said people in the know.
The court has however clarified that the order shall not have any bearing on the merits of the matter and shall not be construed to restrain any person from reporting about investigation and court proceedings in relation to the allegations so long as it is fair and accurate reporting based on duly substantiated, conclusive and verified material.
Singh was represented by his advocate Ayush Jindal. Jindal had argued that the publication contained reckless innuendos, distorted facts, prejudicial implications thereby violating plaintiffs rights guaranteed under Articles 19 & 21 of Constitution of India. It is also stated that the defamatory material constitutes an egregious assault upon the personal and professional reputation.
The court while granting the interim relief opined that Court very much understands and recognises that there is freedom of speech and expression under Articles 19(1)(a) of the Constitution of India, however, these are not absolute rights but have limitations contained within itself under Article 19(2) of the Constitution.
The Ministry of Corporate Affairs, the National Financial Reporting Authority (NFRA) and the Enforcement Directorate are looking into the books of Gensol Engineering following fraud allegations
In April, Sebi banned the promoters of renewable energy company Gensol Engineering Ltd, brothers, Anmol and Puneet Jaggi, from the capital markets over alleged fund diversion and document falsification. The regulator also ordered a forensic investigation. Soon thereafter, BluSmart, an all-electric vehicle ride-hailing service promoted by the Jaggi brothers, began shutting its operations.
ED’s Fema case is focusing on whether funds to the tune of Rs 200 crore routed through a car dealer and cycled back to promoter-linked entities were in contravention of FEMA norms. Some of it was used for unrelated personal expenses, including buying luxury real estate.
At the centre of the controversy is the alleged misutilisation of term loans availed by Gensol Engineering Ltd from state-run Indian Renewable Energy Development Agency and Power Finance Corporation. According to Sebi, the company secured a total of Rs 977.75 crore in loans, of which Rs 663.89 crore was meant specifically for the purchase of 6,400 electric vehicles (EVs). These EVs were procured by the company and subsequently leased to BluSmart, a related party.
However, in a response submitted to Sebi in February, Gensol Engineering admitted that it had procured only 4,704 EVs till date, while it had received funding for 6,400 EVs. This was corroborated by Go-Auto Private Limited, the EV supplier, which confirmed delivering 4,704 units to the company for a total consideration of Rs 567.73 crore.
Given that Gensol Engineering was also required to provide an additional 20% equity contribution, the total expected outlay for the EVs was around Rs 829.86 crore. By that calculation, Rs 262.13 crore remains unaccounted for, said people in the know.
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