Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, are under serious scrutiny after the Securities and Exchange Board of India (Sebi) issued an interim order barring them from the securities market. Sebi has accused the promoters of treating the publicly listed company like a private firm, siphoning off large sums of sanctioned loan money for personal use. Following this, Gensol’s stock took a sharp hit, falling 5% in a single day and contributing to an overall 85% decline over the past year. The company, once a rising name in the clean energy and electric vehicle sectors, has seen its market value crash from ₹4,300 crore to just ₹506 crore.

Founded as a solar EPC firm, Gensol expanded into electric vehicle leasing through its arm that supported BluSmart, an EV ride-hailing company also backed by the Jaggis. But Sebi's findings paint a troubling picture. Nearly ₹262 crore out of ₹978 crore in sanctioned loans — which were intended for the purchase of 6,400 EVs — was allegedly diverted. Only 4,704 vehicles were actually procured. The rest of the funds were routed through Gensol’s EV supplier, Go-Auto Pvt Ltd, and then distributed among entities connected to the promoters.

According to Sebi, a significant portion of the money was spent on luxury real estate, including a premium apartment in The Camellias project in Gurgaon. Other misuses included payments for golf equipment, foreign travel, credit card dues, and even personal transfers to relatives. There were multiple instances of funds being transferred between related entities in a circular manner, which Sebi believes was done to obscure the trail. In one case, ₹50 crore was moved to Capbridge Ventures, a promoter-linked firm, with ₹42.94 crore going toward the apartment purchase. Additional funds flowed to other group companies and were even used for trading in Gensol’s own shares through Sharekhan. Complicating matters further, Sebi discovered that Gensol misled state-run lenders like Ireda and PFC using falsified conduct letters that falsely claimed regular loan repayments. Both agencies later denied issuing these documents and pointed to several repayment defaults.

This scandal has led to a halt in Gensol’s proposed stock split and the initiation of a forensic audit to thoroughly examine its finances. Additionally, several senior executives at BluSmart recently stepped down, officially citing corporate restructuring, though the timing has raised suspicions. Sebi’s interim order has now removed the Jaggis from any key management roles in listed companies, at least until further notice, as investigations continue into what regulators describe as the misuse of public funds for private indulgence.