The Securities and Exchange Board of India (SEBI), in a scathing interim order dated April 15, has exposed what it termed a “complete breakdown of internal controls” at Gensol Engineering Ltd. The order details serious allegations of financial misconduct, including the diversion of hundreds of crores of rupees—raised for electric vehicle (EV) procurement—towards luxury indulgences, real estate, and questionable related-party transactions.
Between FY22 and FY24, Gensol Engineering raised a total of ₹977.75 crore in term loans from two state-run financial institutions—Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The funds were ostensibly raised to procure 6,400 electric vehicles for leasing to BluSmart, a related party. However, only 4,704 EVs valued at ₹567.73 crore were actually delivered, as confirmed by supplier Go-Auto. This left approximately ₹262 crore unaccounted for, more than a year after the final loan tranche had been received.
SEBI’s fund trail investigation uncovered a complex web of transactions. Funds from Gensol were routed to Go-Auto and then siphoned off to various promoter-linked entities, including Capbridge Ventures LLP, Matrix Gas, and Wellray Solar.
In a notable instance cited in the order, ₹50 crore was transferred from Go-Auto to Capbridge on the same day Go-Auto received funds from Gensol. Just three days later, Capbridge paid ₹42.94 crore to DLF Ltd towards a luxury apartment in The Camellias, Gurgaon. The property was initially booked by Jasminder Kaur, the mother of Anmol Singh Jaggi, Gensol’s CEO, and later transferred to Capbridge. The ₹5 crore booking advance she had paid was also traced back to Gensol.
Personal financial statements further revealed extravagant personal expenses made using company-linked funds. Anmol Singh Jaggi reportedly purchased a golf set from TaylorMade worth ₹26 lakh, acquired foreign currency in AED worth ₹1.86 crore, cleared credit card payments of ₹9.95 lakh, and made travel bookings via MakeMyTrip worth ₹3 lakh. His brother, Puneet Singh Jaggi, was also named in the order for reportedly using ₹13.5 crore for American Express card payments, family transfers, and other personal uses.
SEBI also exposed circular fund flows involving the same entities. Go-Auto reportedly moved at least ₹8.5 crore back and forth between Gensol and Wellray. Additionally, ₹10 crore, routed from PFC to Capbridge, eventually circled back to Go-Auto. In a particularly concerning revelation, SEBI found that ₹10 crore originating from Gensol via Wellray was used by the promoters to fund their own participation in a preferential share allotment.
Beyond the alleged financial diversion, SEBI has also flagged false disclosures made by the company. These included inflated claims of pre-orders and portraying non-binding agreements as confirmed business. A SEBI site visit to Gensol’s EV plant in Chakan painted a dismal picture, with no evident manufacturing activity, just 2–3 workers present, and minimal electricity consumption over the previous year.
As a result of these findings, SEBI has taken strict interim action. It has barred Anmol and Puneet Singh Jaggi from holding any director or key managerial positions at Gensol. The market regulator has also frozen their ability to trade in securities. Furthermore, SEBI has halted the company’s planned stock split, stating concerns that it could mislead retail investors amidst ongoing governance issues.
“What was intended to be a green energy story of growth and scale has, for now, been overshadowed by allegations of financial misgovernance and misuse of public money,” SEBI noted in the interim order.
A forensic audit has been ordered into Gensol Engineering’s accounts and operations. The final decision on the company’s fate will rest on the findings of the audit, which is expected to further unravel the depth of the alleged governance collapse.
This development comes as a significant setback not only to Gensol but also to the larger clean energy and EV ecosystem in India, raising concerns about regulatory oversight and corporate accountability in government-backed initiatives.