SEBI has barred Anmol Singh Jaggi and Puneet Singh Jaggi, the proprietors of Gensol Engineering Limited (GEL), from holding any directorship positions in the business and from trading in the stock market. In its interim ruling, the market regulator outlined how the couple diverted loans used to purchase new EVs for BluSmart for personal purposes, including the purchase of a luxurious condominium in Gurgaon.

Gensol obtained term loans totalling Rs 978 crore from IREDA and PFC between 2021 and 2024, including Rs 664 crore used to purchase 6,400 EVs that will be leased to BluSmart. Gensol was also planned to give an additional equity (margin) commitment of 20%, increasing the total expected deployment to around Rs 830 crore for the acquisition of the EVs.

According to an exchange filing released in February 2025, the company has only bought 4,704 EVs thus far.  Its EV supplier, Go-Auto, also disclosed that Gensol purchased 4,704 EVs for a total of Rs 568 crore.  SEBI stated that the Rs 262.13 crore difference between the total projected deployment of about Rs 830 crore and the actual EV consideration of Rs 568 crore remains unaccounted for, despite the fact that the company has received the last tranche of financing more than a year ago.

Related: playR, IPL Jersey Manufacturer Aims Rs 75 crore Revenue Total for FY26

According to the market regulator, “once the funds were transferred from Gensol to Go-Auto, ostensibly for the purchase of EVs, they were, in most of the instances, either transferred back to the Company itself or routed to entities that were directly or indirectly related to Anmol Singh Jaggi and Puneet Singh Jaggi, promoters and directors of Gensol.”

The founders also utilized some of these cash for personal needs, according to SEBI.  After receiving a tranche of the loan from IREDA in 2022, Gensol diverted significant amounts of the funds to Go-Auto, which then transferred the funds to Capbridge, a Gensol-related entity.  Capbridge then sent Rs 42.94 crore to real estate conglomerate DLF.

When SEBI approached DLF for details, the real estate company stated that the money was paid for the purchase of an apartment in the ultra-luxury complex The Camellias in Gurgaon.  “Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners,” according to the SEBI interim order, which was issued on April 15.

Another related entity, Wellfray Solar Industries, was cited in SEBI’s order.  It was one of the purported receivers of Gensol’s diverted cash, which were intended to be used to purchase EVs for BluSmart.  Notably, the Jaggi brothers formerly held key managerial posts at Wellfray.  Bank statements provided by SEBI revealed that Gensol paid Wellfray Rs 424.14 crore, of which Rs 382.84 crore was transferred to different other firms.  Anmol Singh Jaggi and Puneet Singh Jaggi received Rs 25.76 crore and Rs 13.55 crore, respectively, from the Rs 246.07 crore paid to Gensol linked parties.

SEBI further examined Anmol Singh Jaggi’s bank statements and discovered that the majority of monies were moved to other associated parties, family members, or used for personal expenses. Some notable payments made for personal use include the following:

• Rs 26 lakh to buy a golf set from TaylorMade
• Rs 6.2 crore sent to mother Jasminder Kaur
• Rs 2.99 crore to wife Mugdha Kaur Jaggi
• Rs 1.86 crore to buy foreign currency
• Rs 17.28 lakh to Titan Company for personal use
• Rs 11.75 lakh to DLF Homes for personal use
• Rs 3 lakh to Make My Trip for personal use

Bank statements of Puneet Singh Jaggi also showed such diversions.

SEBI order is noticed. “What has been witnessed in this situation is a complete breakdown of internal controls and corporate governance principles in Gensol, a publicly traded business.  The promoters were running a publicly traded company as if it were a private corporation.  The Company’s funds were channeled to associated parties and utilized for unrelated costs, as if they were the promoters’ piggybank.”  The decision further stated: “The result of these transactions would mean that the diversions mentioned above would, at some time, need to be written off from the Company’s books, ultimately resulting in losses to the investors of the Company.”

Gensol Engineering shares fell 5%, remaining in the lower circuit at Rs 122.68 each.