Gensol Engineering Limited, the group company of EV manufacturer BluSmart, stock fell another 5 per cent on Thursday, its total decline reaching almost 90 per cent from the 52-week high level of Rs 1,124.90 as a huge scam was uncovered by the capital market regulator.
The sharp fall follows after the Securities and Exchange Board of India (SEBI) approved an interim order revealing serious financial malpractices and excluding the company's promoters from participating in any managerial position.
Gensol shares were at Rs 116.54, remaining in the lower circuit on Thursday on the National Stock Exchange (NSE).
The stock has been subjected to heavy selling pressure since SEBI accused promoters of Gensol, Anmol Singh Jaggi and Puneet Singh Jaggi, of large-scale fund diversion.
The regulator prohibited the Jaggi brothers from associating with the securities market or occupying any key managerial posts in listed entities.
SEBI investigation discovered that promoter Anmol Singh Jaggi allegedly invested company money in family members and for personal expenses.
Pursuant to the order, Jaggi had wired Rs 6.2 crore to his mother and Rs 2.98 crore to his wife.
Jaggi spent the company's significant funds on costly luxuries such as a set of golf club worth Rs 26 lakh, shopping worth Rs 17 lakh at Titan, and spa session for over Rs 10 lakh.
Approximately Rs 3 lakh was incurred on personal travel via MakeMyTrip. The order also spoke about a transaction of Rs 50 lakh to Third Unicorn's startup founded by BharatPe's Co-founder Ashneer Grover.
Jaggi supposedly siphoned off Rs 25.76 crore of BluSmart's money, part of which was utilized for foreign exchange, investments, credit card bills, and miscellaneous extravagant expenses.
Adding to the upheaval, BluSmart is said to have suspended ride bookings and is on its way to becoming a fleet partner for Uber.
As per reports in the media, the firm has initiated rebranding of its electric taxis as Uber Green in Bengaluru. The action follows after Jaggi brothers quit their roles in leadership due to the SEBI crackdown.
As per a ground report by NDTV Profit, the process of rebranding has already begun. In the Bengaluru airport, a few BluSmart cabs have already started getting Uber Green livery.
"A taxi driver at the location confirmed the transition and even shared a photo of a cab being repainted," the report stated.
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