The Securities and Exchange Board of India (SEBI) has confirmed its ban on Gensol Engineering and its former executives, Anmol Singh Jaggi and Puneet Singh Jaggi, over allegations of fund diversion and corporate governance failures. The prohibition prevents the Jaggi brothers, who are also cofounders of the electric vehicle ride-hailing firm BluSmart Mobility, from participating in the securities markets or holding directorial or key managerial roles at Gensol.
This decision comes at a time when Gensol is undergoing insolvency proceedings under a court-appointed professional’s supervision. SEBI’s actions underscore its commitment to maintaining market integrity by addressing financial misconduct decisively.
SEBI’s confirmatory order revealed that the initial findings of fund misappropriation and conduct falsification, highlighted in an interim order in April 2025, remain unrebutted. The Jaggi brothers stand accused of siphoning off loan funds from Gensol for personal use, raising significant concerns about financial misconduct and the company’s governance standards. The order states, “… prima facie findings regarding diversion / mis-utilisation of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation into this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties.”
As the detailed investigation continues, SEBI has affirmed that the findings will be corroborated through a forensic audit to provide clarity on the financial misconduct allegations. SEBI Whole Time Member Kamlesh C Varshney noted, “The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny.” SEBI finds no grounds to lift the restrictions imposed earlier, emphasizing the importance of transparency and accountability in corporate governance.
The restrictions on Gensol and the Jaggi brothers remain subject to any further orders from the competent tribunal or court overseeing Gensol’s insolvency process. This step reflects SEBI’s commitment to ensuring accountability and transparency in financial operations and governance within publicly listed companies.
The ongoing investigation and forensic audit are expected to further illuminate the extent of financial misconduct at Gensol and its affiliates. Such measures are vital for protecting investor interests and maintaining trust in the financial system.
