Independent Director Arun Menon quits Gensol Engineering

Arun Menon, an independent director on the board of scam-struck Gensol Engineering (GEL), has resigned with immediate effect, the company said in an exchange filing.

The filing showed that the resignation was tendered by Menon on April 15, in which he had written directly to one of the promoters Anmol Jaggi, expressing his ongoing concerns about the rising debt position of the company.

On Tuesday, SEBI issued an interim order against the company and its promoters, barring them from the securities markets, barring the promoters from any key managerial position in the company after its investigations revealed wide-spread funds diversions and instances of fraud.

Expressing concern

Addressing Jaggi, Menon wrote, “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 restructure route. While you had messaged me that you would call back, it never progressed. I had also spoken to Mr Parmar on 2-3 occasions and asked him for a meeting with the CFO, which never seemed to materialise. 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.”

Feeling that he was adding limited value to the company, Menon said he had expressed a desire last year to resign but had been persuaded to hold on till the IPO of Matrix Gas & Renewables was successfully concluded.

He added that his present employment restricted him from taking up the role of independent director in companies. “Keeping in view the aforesaid reasons, I would like to tender my resignation from my role as Independent Director in GEL with immediate effect.”

Published on April 17, 2025