The Securities and Exchange Board of India (SEBI) has issued a scathing interim order against Gensol Engineering Ltd, raising serious concerns over financial mismanagement, misleading disclosures, and questionable corporate governance practices.
The order, dated April 15, follows an investigation triggered by a complaint received in June 2024, alleging share price manipulation and fund misappropriation.
According to SEBI’s findings, Gensol Engineering – promoted by brothers Anmol Singh Jaggi and Puneet Singh Jaggi – presented a misleading operational narrative to investors, particularly regarding its electric vehicle (EV) business under Gensol Electric Vehicle Private Ltd.
A site inspection conducted by an official from the National Stock Exchange (NSE) on April 9 at the company’s Chakan (Pune) facility revealed a complete lack of manufacturing activity, with only two to three labourers present at the premises.
Further, electricity bills from power distributor Mahavitaran indicated minimal energy usage, with the highest bill amounting to just ₹1.57 lakh in December 2024 – further corroborating the absence of active production at the plant, which operates from a leased property.
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This inspection contradicted Gensol’s earlier claims made on January 28, 2025, wherein the company informed the stock exchanges of receiving pre-orders for 30,000 EV units showcased at the Bharat Mobility Global Expo 2025.
SEBI’s probe, however, uncovered that these “orders” were merely non-binding Memorandums of Understanding (MoUs) with nine entities for 29,000 vehicles, lacking clarity on pricing or delivery timelines.
SEBI’s interim order also raised red flags over a proposed strategic tie-up with Refex Green Mobility Ltd for transferring 2,997 electric vehicles and a ₹315 crore debt assumption.
Notably, this agreement was withdrawn by Refex on March 28, 2025. Similarly, another high-value deal involving the sale of Gensol’s US subsidiary, Scorpius Trackers Inc., for ₹350 crore was found dubious. The subsidiary itself was only incorporated in July 2024, and Gensol failed to justify its valuation when questioned.
One of the most damning revelations in SEBI’s report was the apparent diversion and misutilisation of company funds. Gensol secured loans worth ₹977.75 crore from Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) between FY22 and FY24, with ₹663.89 crore earmarked for the purchase of 6,400 EVs.
However, only 4,704 vehicles – worth ₹567.73 crore – were actually procured, as confirmed by supplier Go-Auto. The discrepancy left an unaccounted-for amount of ₹262.13 crore.
SEBI noted that the missing funds were rerouted back to Gensol or entities controlled by the Jaggi brothers, with a portion reportedly used for personal enrichment – including luxury real estate purchases, transfers to family members, and investments in privately held companies owned by the promoters.
In response to these serious governance failures and potential fraud, SEBI has barred Gensol Engineering and its promoter-directors from accessing the securities market until further notice. Additionally, Anmol and Puneet Jaggi have been prohibited from holding any directorial or key managerial positions within the company.