Blogs Listing | Zentrum

Protecting Your Talent Investment: Legal Lessons for Employers on Employee Exit Clauses

Employers often invest significant time and resources in hiring and training employees, only to face disruptions when employees resign prematurely. To address this, many employment contracts include minimum service clauses and liquidated damages provisions. These raise legal questions around freedom of profession, restraint of trade, and public policy. The recent Supreme Court ruling in Vijaya Bank v. Prashant B. Narnaware brings much-needed clarity, holding that such clauses are legally valid—provided they are reasonable, voluntarily agreed upon, and not punitive in nature. This blog explores the judgment and its implications for drafting enforceable employment terms in India.

May 24,2025

5 mins

THE GENSOL-BLUSMART COLLAPSE: A CASE STUDY IN CORPORATE GOVERNANCE FAILURES

This case study examines the financial scandal surrounding Gensol Engineering Limited (GEL) and BluSmart Mobility, two interlinked entities led by the Jaggi brothers. GEL, a rapidly growing player in solar energy and electric vehicle leasing, partnered with BluSmart, India’s first all-electric ride-hailing service. What initially appeared as a strategic alliance turned into a massive fraud scheme when it was uncovered that Gensol misused government-backed loans, diverted funds through a network of shell companies, and manipulated stock prices. The scandal came to light after SEBI launched an investigation in 2024, revealing the misappropriation of ₹977.75 crore in loans meant for electric vehicle procurement. The Jaggi brothers funneled money for personal luxury purchases and stock market manipulation, leading to the collapse of investor confidence and the suspension of BluSmart’s operations. This case highlights significant failures in corporate governance, regulatory oversight, and ethical business practices, offering critical insights into the risks posed by interlinked companies and inadequate financial transparency. The scandal has now triggered a multi-agency probe, with the Ministry of Corporate Affairs (MCA), Enforcement Directorate (ED), and SEBI investigating alleged fund diversion, money laundering, and accounting fraud. The Institute of Chartered Accountants of India (ICAI) is also auditing financial statements, signaling a systemic crackdown on corporate malfeasance

May 21,2025

16 mins

What Businesses Often Miss When Expanding Internationally

Expanding globally is a big milestone—but it also brings legal complications many founders aren’t prepared for.

May 19,2025

0 mins

Navigating Fintech Regulations in India: A Legal Checklist for Founders

India’s fintech ecosystem is growing rapidly, but so are the complexities that come with it. Founders often find themselves juggling innovation and compliance—and it’s not an easy balance.

May 19,2025

0 mins

Why Fast-Moving Startups Need a Legal Partner Who Moves Faster

Startups are built on speed—speed to market, speed to scale, speed to pivot. But in the rush to grow, legal compliance often becomes an afterthought. That’s where things can go wrong.

May 19,2025

1 mins