SEBI has taken stern action against the promoters of Gensol Engineering Limited (GEL), Anmol Singh Jaggi and Puneet Singh Jaggi, by debarbing them from serving as directors of the company and debarring them from trading in the market.
In its interim order, SEBI detailed how the duo diverted loans meant for buying new electric vehicles (EVs) for BluSmart to fund personal expenses, including the purchase of a luxury apartment in Gurgaon.
Between 2021 and 2024, Gensol raised term loans of Rs 978 crore from IREDA and PFC, out of which Rs 664 crore was to be used for the acquisition of 6,400 EVs to be leased to BluSmart. Gensol also agreed to an additional 20% equity contribution, taking the total estimated expenditure to Rs 830 crore. But in a February 2025 filing, Gensol said it had bought just 4,704 EVs, for which Rs 568 crore was incurred. SEBI pointed out a Rs 262.13 crore difference between the anticipated allocation and the actual cost of EVs, which remains unexplained even after a year since the last loan tranche was received.
The regulator noticed that after Gensol remitted the amount to Go-Auto, supposedly for the purchase of EVs, the funds were frequently diverted back to the company itself or channelled to entities associated with the Jaggi brothers. SEBI added that some portion of these funds were utilized towards personal expenses, such as the acquisition of a luxury apartment in The Camellias, a high-end property in Gurgaon. SEBI’s order disclosed that after receiving a loan tranche from IREDA in 2022, Gensol diverted a major portion of the funds to Go-Auto, which subsequently transferred the money to Capbridge, a related party. Capbridge then funneled Rs 42.94 crore to real estate giant DLF, which was used to purchase an apartment in the upscale project, The Camellias.
SEBI also referred to Wellfray Solar Industries, another related entity, which also claimed funds meant for EV purchases. Gensol gave money to Wellfray Rs 424.14 crore, where Rs 382.84 crore was further disbursed to other entities, including Rs 246.07 crore to Gensol-related entities. Rs 25.76 crore went to Anmol Singh Jaggi and Rs 13.55 crore went to Puneet Singh Jaggi. SEBI’s analysis of Anmol Singh Jaggi’s bank transactions revealed significant personal payments, including Rs 26 lakh for a golf set, Rs 6.2 crore to his mother, and other expenditures for personal use, such as buying foreign currency and paying for luxury items.
SEBI also reviewed the bank statements of Puneet Singh Jaggi, noting similar fund diversions. The regulator emphasized the complete failure of corporate governance at Gensol, stating that the promoters treated the company as if it were their personal entity, misusing company funds for unrelated expenses. SEBI’s order warned that these misappropriations would ultimately result in financial losses for the company’s investors. Following the release of the interim order, Gensol’s shares plunged 5%, hitting the lower circuit at Rs 122.68 per share.
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