Governance Community

The Ministry of Corporate Affairs (MCA) has initiated a formal investigation into Gensol Engineering Ltd. and its affiliate BluSmart Mobility for alleged violations of corporate governance norms, invoking Section 210 of the Companies Act. The probe, triggered in the public interest, will focus on fund diversion and fraudulent disclosures flagged by the Securities and Exchange Board of India (SEBI) in an interim report released in April 2024. The investigation is expected to conclude within three months, following which a detailed report will be submitted to the central government. Section 210 empowers the MCA to appoint expert inspectors in forensic accounting, financial audits, and legal compliance to scrutinize company records, bank statements, demat accounts, and the assets of directors, key managerial personnel (KMPs), and auditors. Company law experts noted that the size and seriousness of the alleged fraud could result in the matter being escalated to either the Serious Fraud Investigation Office (SFIO) or the National Company Law Tribunal (NCLT) for adjudication. SEBI began examining Gensol in early 2024 after receiving a complaint about share price manipulation and fund misuse. The probe revealed that Gensol allegedly submitted falsified debt servicing documents to credit rating agencies ICRA and CARE. When the agencies sought verification, IREDA and PFC—the two lenders named—denied issuing the conduct letters submitted by Gensol. On April 15, SEBI passed an interim order barring Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi from holding any key positions or participating in the securities market. The report stated the promoters used loan funds meant for electric vehicle procurement for personal luxuries, including the purchase of a luxury apartment in DLF’s The Camellias and expenses on travel, shopping, and leisure items like a golf set.

Karnataka Governor Thaawarchand Gehlot has granted assent to the Greater Bengaluru Governance Bill, 2024, paving the way for a major transformation in the administrative structure of Bengaluru. The move will restructure the Bruhat Bengaluru Mahanagara Palike (BBMP) into multiple smaller municipal corporations aimed at enhancing local governance and service delivery. This long-pending reform is designed to decentralise Bengaluru’s civic administration by creating up to seven new municipal bodies. Each unit is expected to serve at least 10 lakh residents, generate Rs 300 crore in annual revenue, and operate in predominantly non-agricultural areas. The overarching goal is to empower local zones with greater financial and administrative autonomy. Congress MLA Rizwan Arshad lauded the Governor’s assent, stating on X, “This Bill marks a landmark step in reforming Bengaluru’s governance model. It decentralises decision-making, empowers zonal committees, and grants autonomy at the grassroots level.” Before granting approval, Governor Gehlot had previously returned the bill, seeking clarifications amidst strong objections from the Opposition BJP and several civic groups. To ensure cohesive governance across these units, the bill also proposes the establishment of the Greater Bengaluru Authority (GBA). The Chief Minister will serve as the ex-officio chairperson of the GBA, while the Minister for Bengaluru Development will act as its vice-chairperson. The authority will coordinate efforts among various parastatal bodies like the Bangalore Development Authority, BWSSB, BMTC, BMRCL, BESCOM, BMLTA, and the Solid Waste Management Ltd. The restructuring is seen as a critical step in addressing Bengaluru’s growing urban challenges and ensuring that governance keeps pace with the city’s rapid expansion.

At the 17th Civil Services Day in New Delhi, Prime Minister Narendra Modi delivered a visionary address urging India’s bureaucrats to champion a “technology-first” approach in governance while retaining the critical value of human judgement. “No matter how tech-driven the world becomes, we should never forget the importance of human judgement,” he stressed, highlighting the need for a balanced approach in public administration. Calling civil servants “enablers of growth,” the Prime Minister emphasized the rising significance of startups and MSMEs as key drivers of innovation, supply chain efficiency, and global competitiveness. He urged officers to adopt governance models that support and scale such enterprises, reinforcing India’s ambition to become the world’s third-largest economy. Mr. Modi underlined that the “quality of governance” is measured by the real impact of schemes on the ground. He stressed that India must maintain focus on food, water, and energy security—especially in light of global challenges that disproportionately affect the Global South. In his address, the Prime Minister pointed to transformative government programmes such as the Aspirational Districts initiative, which has led to marked improvements in health, education, and infrastructure across underserved regions. He described the past decade as a period of “impactful transformation,” not just incremental change. Highlighting India’s leap in digital innovation, Modi noted that the country is now 10–11 years ahead of many others in governance technology. He also presented the Prime Minister’s Awards for Excellence in Public Administration, recognizing achievements in holistic district development, aspirational blocks, and innovation. Two eBooks were released during the event. The Prime Minister concluded by urging civil servants to work tirelessly toward a shared vision of a developed India, stating, “Every day, every moment counts in building the nation we dream of.”

In a landmark move aimed at streamlining urban governance and enhancing property management, the Maharashtra Cabinet has approved a series of major reforms affecting municipal corporations, municipal councils, and industrial cities across the state. One of the most significant reforms is a change in the procedure for removing the presidents of these civic bodies. Until now, elected members could initiate the removal of a president only with signatures from at least 50% of the body. Under the new rules, the required voting strength has been increased to two-thirds of the elected members. Moreover, the district collector is now responsible for organizing a special session within 10 days of receiving a proposal to vote on the matter, thereby expediting the process and ensuring greater accountability. In addition, the Cabinet has revised the rules regarding the leasing of properties owned by these urban bodies. The new regulations stipulate that the lease rates for residential, educational, charitable, and public-purpose properties must be no less than 0.5% of the current market value (as defined by the Ready Reckoner). For commercial and industrial properties, the minimum lease rate is now set at 0.7%. To implement these changes, a five-member committee chaired by the respective district collector will evaluate and set the lease value, rates, and security deposits for such properties. Further relief comes in the form of the Abhay Yojana, a new initiative that offers amnesty on penalties for overdue property taxes. Currently, overdue payments attract a 2% monthly penalty. With this move, the state hopes to incentivize defaulters to clear outstanding dues and improve the financial health of municipal bodies. These reforms collectively aim to boost transparency, improve revenue collection, and bring efficiency to local governance in Maharashtra. Source: Free press journal