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Sebi bars Gensol promoters, the Jaggi brothers, for misusing Rs 260 crore EV loan funds on luxuries. Stock plummets, forensic audit underway. Read full story inside.
Gensol Fraud Scandal: The Securities and Exchange Board of India (Sebi) recently issued an order that has brought to light significant issues within Gensol Engineering. Sebi has barred the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to allegations of misusing public company funds for personal gain. A Steep Decline in Gensol Engineering’s Stock Following Sebi’s announcement, Gensol Engineering’s stock fell by 5 percent.
However, the stock price has dropped by 85 percent over the past year, and promoter holdings decreased from 70.72 percent to 35 percent. The promoters are accused of siphoning off loan funds meant for the company, misleading investors, lenders, and regulators.
The interim order not only restricts them from accessing capital markets but also prevents them from holding key positions in any listed company for the time being. Rise And Fall Of Gensol Engineering The Rise and Fall of Gensol Engineering Founded by Anmol Singh Jaggi as a solar EPC company, Gensol quickly became a leader in India’s clean tech sector. After debuting on the BSE SME platform in 2019, it transitioned to the main board.
The company expanded its interests into the electric vehicle (EV) market through its leasing arm, which supported BluSmart, an EV ride-hailing service also promoted by the Jaggis. Despite its rapid growth, the company’s market capitalization plummeted from Rs 4,300 crore to Rs 506 crore within a year. Retail investor participation surged, with the shareholder base growing from 155 in FY20 to over 110,000 by March 2025.
BluSmart’s Leadership Shake-Up At the end of March, BluSmart experienced significant leadership changes, with the CEO, Chief Business Officer, Chief Technology Officer, and Vice-President of Experience all resigning. Although officially attributed to corporate restructuring, the timing and scale of these departures raised concerns. Misuse Of Loans It is the alleged misuse of nearly Rs 262 crore from the Rs 978 crore loaned to Gensol by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC).
The funds were intended for acquiring 6,400 EVs for leasing to BluSmart, but only 4,704 vehicles were purchased. Sebi’s findings suggest that a portion of the funds was redirected to personal luxuries, such as high-end real estate, foreign travel, golf equipment, and other personal expenses. Complex Fund Routing and Personal Purchases Funds were allegedly routed through Go-Auto Pvt Ltd, Gensol’s EV supplier, and then funneled to entities controlled by the Jaggi brothers.
For example, Rs 50 crore from a Rs 71.41 crore loan was transferred to Capbridge Ventures LLP, a promoter-owned entity, with Rs 42.94 crore used to buy an apartment in DLF Camellias.
Other transactions included routing Rs 40 crore from Go-Auto to Wellray Solar Industries, and significant amounts to various other promoter-linked firms. Further, PFC loan funds were similarly misused, with Rs 96.69 crore going to Gensol Consultants and Capbridge Ventures, and circular transactions among Gensol EV Lease, GoSolar Ventures, and BluSmart Mobility obscuring the fund trail.
Additionally, at least Rs 50 lakh was transferred to Third Unicorn, a startup founded by Ashneer Grover, who himself has faced financial controversies. Sebi’s Investigation and Immediate Actions Sebi’s investigation followed a complaint in June 2024 and the subsequent downgrade of Gensol’s credit ratings. It revealed a deliberate diversion of funds, including the securing of a Rs 71.
41 crore loan from Ireda and an additional Rs 26 crore of internal funds. These amounts were moved to Go-Auto, then to Capbridge Ventures for personal purchases. Sebi has appointed a forensic auditor to further examine the company’s accounts and transactions, and the proposed stock split has been halted.
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