The Securities and Exchange Board of India (SEBI) has issued an interim order against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, following allegations of fund misappropriation and misleading disclosures.
SEBI has restrained the promoters from holding any directorial or key managerial positions in the company and has barred them from buying, selling, or dealing in securities.
A forensic auditor will be appointed by SEBI to examine Gensol’s financial records, and the report is expected within six months.
The investigation revealed that Gensol Engineering had availed ₹977.75 crore in term loans, of which ₹663.89 crore was earmarked for purchasing 6,400 electric vehicles (EVs). However, only 4,704 vehicles worth ₹567.73 crore were procured, with ₹262.13 crore unaccounted for.
The funds were allegedly diverted back to the promoters or their related entities, including luxury expenses, real estate purchases, and transfers to family members. The probe also uncovered round-tripping of funds between Gensol entities and Go-Auto, the EV supplier.
In addition, Gensol’s claims of securing 30,000 EV orders were found to be based on non-binding memoranda of understanding, lacking key terms such as price and delivery. SEBI also highlighted discrepancies during a site visit, revealing no manufacturing activity at Gensol’s plant.
As a result of these findings, SEBI has suspended Gensol’s recent announcement of a 1:10 stock split, deeming the corporate action not in the best interests of investors.
Ahead of this development, shares of Gensol Engineering closed at ₹130.15, down ₹3.05 (2.29%) on BSE today.
