SEBI Bars Gensol Promoters From Securities Market For Diverting Funds For Personal Expenses
The funds were allegedly misused for personal expenses including a luxury apartment in DLF’s Camellias project.
The Securities and Exchange Board of India on Tuesday barred Gensol Engineering, its Chief Executive Officer Anmol Singh Jaggi and Promoter-Director Puneet Singh Jaggi from securities markets over fund diversion charge.
The market watchdog has also restrained both the company officials from holding any key managerial positions.
Gensol has been asked to hold the stock split announced by it, and the regulator has directed the appointment of a forensic auditor to examine its books of accounts and those of related parties.
SEBI has found that the funds were diverted to buy luxury property and pay for personal expenses of promoters.
In the detailed order passed by Ashwani Bhatia, whole-time member at SEBI, the regulator noted that Gensol, a renewable energy and electric vehicle leasing company based in Ahmedabad, had witnessed an exponential rise in revenues and shareholding post its BSE SME listing in 2019 and migration to the mainboard in 2023. The regulator also mentioned that this can be seen on the online platform called Screener.in as well.
Credit rating agencies downgraded Gensol's credit rating to “D” in March 2025, citing confirmed payment delays. When the regulator called upon them to explain the sudden downgrade, it was revealed that the company submitted fabricated debt servicing conduct letters from state-run lenders IREDA and Power Finance Corp.
Later on, it was learned by the credit rating agencies from IREDA and PFC that no such conduct letters were issued to Gensol by them.
Despite defaults beginning as early as December 2024, the company falsely assured rating agencies that it was regular in its payments.
Fund Diversion Charge
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 crores unaccounted.
The sanctioned loans were allegedly routed to a dealer, Go-Auto Pvt. Ltd., which in turn redirected the funds to various entities linked to the Jaggi brothers, including Capbridge Ventures LLP, Matrix Gas and Renewables Ltd., and Wellray Solar Industries Pvt. These funds were then misused for personal expenses as well including a luxury apartment in DLF’s Camellias project, initially booked under the Jaggi brothers' mother’s name and later transferred to Capbridge.
The promoter holding in Gensol, once over 70%, came down to 35% as of March 2025. Of this, 75.74 lakh shares had been pledged with IREDA, many of which have reportedly been invoked. Meanwhile, retail investors continue to hold nearly 65% of the company’s shares.
Gensol’s stock exchange disclosures have also come under fire. In January this year, the company claimed to have received 30,000 EV pre-orders, but there were only non-binding MoUs for 29,000 units with no delivery schedules or pricing.
A plant visit by NSE officials revealed that no actual manufacturing was taking place at the Chakan facility, raising questions about the company’s operations.
Similarly, a disclosure was made regarding a Rs 315-crore strategic partnership with Refex Green Mobility. However, it was withdrawn without much ado in March 2025. Another claim of a $350 million deal to sell a newly incorporated US subsidiary lacked any material evidence.
