Gensol Founders Anmol Singh Jaggi, Puneet Singh Jaggi Resign Month After SEBI Order

Anmol Singh Jaggi and Puneet Singh Jaggi, the embattled founders of Gensol Engineering Ltd., have stepped down from key managerial positions, according to an exchange filing on Monday.

Anmol Jaggi resigned as the managing director of the company, whereas Puneet Jaggi has resigned as the whole-time director, as per the filing.

Consequently, they shall also cease to be members of the various committee of the company, it added.

The Jaggi brothers, in their resignation letters, cited the directive issued by the Securities and Exchange Board of India last month as the reason behind stepping down.

In its interim order issued on April 15, SEBI barred both of them from accessing the securities market and restrained them from holding any key managerial position in Gensol.

The market regulator, citing its investigation, claimed that the company's funds were diverted to buy luxury property and pay for personal expenses of promoters.

The investigation majorly revolves around Rs 975 crore in loans raised by Gensol to purchase 6,400 electric vehicles , of which only 4,704 EVs were actually procured for Rs 567.73 crore. This left over Rs 200 crore unaccounted.

Notably, Gensol had obtained loans over Rs 977 crore in term loans from Power Finance Corp. and Indian Renewable Energy Development Agency Ltd. for the procurement of EVs.

However, only 4,707 vehicles were bought and leased to BluSmart, an EV cab operator linked to the promoters. This left more than Rs 262 crore unaccounted for over a span of one year, as per the SEBI order.

The market watchdog said funds were transferred from Gensol to Go Auto Pvt Ltd for EV purchases but were subsequently routed back or diverted to other entities linked to the Jaggi brothers. These funds were then used for personal expenditures, it claimed.

In one instance, Rs 93.88 crore from an IREDA loan was transferred to Go Auto. Of this, Rs 50 crore was moved to Capbridge Ventures LLP and later used to purchase a luxury apartment in DLF Camellias worth over Rs 42 crore, as per SEBI.

In another case, Go Auto sent Rs 40 crore to Wellray Solar Industries Pvt Ltd, which later transferred funds to four other entities, it added.