In an interim order dated April 15SEBI has laid bare what it calls a “complete breakdown of internal controls” at Gensol Engineering Ltd, alleging that the company’s promoters diverted hundreds of crores raised for electric vehicle (EV) procurement into personal indulgences, luxury real estate, and questionable transactions with related entities.
Between FY22 and FY24, Gensol raised ₹977.75 crore in term loans from two government lenders—IREDA and PFC—ostensibly to procure 6,400 electric vehicles for leasing to BluSmart, a related party.
However, only 4,704 EVs worth ₹567.73 crore were actually delivered, as confirmed by supplier Go-Auto. That left ₹262 crore unaccounted for, more than a year after the final loan tranche had been received.
SEBI’s fund trail shows a complex web of transactions in which company funds were first transferred to Go-Auto, and from there, funneled to promoter-linked entities including Capbridge Ventures LLP, Matrix Gas, Wellray Solar, and others.
In one instance, ₹50 crore was transferred from Go-Auto to Capbridge on the same day Go-Auto received funds from Gensol. 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, 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.
Further examination of personal bank statements revealed multiple instances of personal spending. Anmol Singh Jaggi allegedly used company-linked funds to buy a golf set from TaylorMade (₹26 lakh), foreign currency in AED (₹1.86 crore), make credit card payments (₹9.95 lakh), and book travel via MakeMyTrip (₹3 lakh).
His brother, Puneet Singh Jaggi, reportedly used ₹13.5 crore received through similar channels for transactions involving American Express card payments, family transfers, and other personal expenses.
Funds were also recycled in circular loops—Go-Auto moved at least ₹8.5 crore multiple times through Gensol and Wellray, while ₹10 crore routed from PFC to Capbridge eventually circled back to Go-Auto. In yet another case, SEBI found that the promoters used ₹10 crore—originating from Gensol via Wellray—to fund their own participation in a preferential share allotment.
Beyond diversion of funds, SEBI flagged false disclosures, including inflated claims of pre-orders and non-binding agreements passed off as confirmed business. A site visit to Gensol’s EV plant in Chakan revealed that no manufacturing activity was underway, with just 2–3 workers present and minimal power consumption over the previous year.
SEBI has now barred the company’s promoters—Anmol and Puneet Singh Jaggi—from holding any director or key managerial position at Gensol and frozen their ability to trade in securities. It has also halted the company’s planned stock split, citing concerns that it could lure retail investors while serious governance issues remain unresolved.
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. A forensic audit has been ordered, and the company’s fate will likely hinge on the final findings.
