SEBI Uncovers Major Financial Irregularities At EV-Maker Gensol Engineering

The Securities and Exchange Board of India (SEBI) has issued a detailed interim order against Gensol Engineering Limited, uncovering a wide-ranging web of financial mismanagement, fund diversion, and misleading disclosures involving the company's promoters and affiliated entities. The order, spanning nearly 30 pages, outlines evidence of corporate governance failures and misappropriation of funds by Anmol Singh Jaggi and Puneet Singh Jaggi, the company's promoter-directors. 

Gensol, a listed entity engaged in solar EPC, EV leasing, and consulting services, grew its standalone sales from ₹61 crore in FY2017 to ₹1,297 crore in FY2024. Its net profit rose to ₹80 crore over the same period, reflecting rapid expansion. However, in stark contrast, the company’s share price plunged from ₹1,126 to ₹133 within a year, triggering regulatory scrutiny.

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SEBI’s probe was triggered after credit rating agencies CARE and ICRA downgraded Gensol’s ratings to 'D' in March 2025 due to debt servicing delays. Further investigation revealed that the company submitted falsified conduct letters and debt servicing confirmations, allegedly to mislead credit agencies and investors.

Contrary to Gensol’s claims, SEBI found that the company had defaulted multiple times on its loan obligations with IREDA and PFC— two major public sector lenders — dating back to December 2024. These defaults were not disclosed as required under SEBI’s listing regulations.

Between FY22 and FY24, Gensol borrowed nearly ₹978 crore from IREDA and PFC, largely to fund the purchase of 6,400 electric vehicles (EVs). However, the company procured only 4,704 EVs worth ₹567.73 crore, creating a discrepancy of over ₹207 crore, which remains unaccounted for. 

Bank statement analysis showed that a significant portion of the loan disbursements, meant for EV procurement, was transferred to Go-Auto, which in turn funnelled large sums to promoter-linked entities, including Capbridge Ventures LLP, Matrix Gas, and Gensol Ventures. 

Funds traced from Go-Auto were found to be used for non-business purposes, including the purchase of luxury real estate at DLF’s The Camellias in Gurgaon. Transactions involved layered fund movements, and payments were made in the names of relatives and associated entities of the promoters. 

In one case, ₹50 crores was routed from Go-Auto to Capbridge, which was then used to pay for an apartment initially booked in the name of Jasminder Kaur, mother of Anmol Singh Jaggi. The flat was later re-registered under Capbridge. SEBI found that the original booking amount paid by Ms Kaur was also sourced from Gensol, further pointing to misuse of company funds.

SEBI’s analysis showed that a ₹10 crore investment made in Gensol's September 2022 preferential issue by its promoter entity was likely funded via diverted company money, layered through personal accounts and related-party entities. 

Another major revelation was that Wellray Solar Industries Pvt. Ltd., a company previously owned by Gensol promoters, used ₹137 crore, majorly received from Gensol and its affiliates, to trade in Gensol’s own shares. Between April 2022 and December 2024, 99% of Wellray’s total trades were in Gensol stock — raising questions about potential stock price manipulation and violation of Section 67 of the Companies Act. 

Gensol had announced pre-orders for 30,000 EVs in January 2025 and a strategic tie-up with Refex Green Mobility for 2,997 EVs. However, SEBI found that these were based on non-binding MOUs with no pricing or delivery schedules. A surprise inspection by NSE revealed that Gensol’s EV manufacturing plant in Pune was practically non-functional, with minimal power usage and no significant activity.

In response, SEBI has barred Anmol and Puneet Singh Jaggi from acting as directors or KMPs in Gensol until further notice. It has also restrained all three notices— Gensol, Anmol Singh Jaggi, and Puneet Singh Jaggi from dealing in securities. Additionally, it has directed Gensol to halt its proposed 1:10 stock split, citing risk to retail investors and ordered the appointment of a forensic auditor to examine the company’s books and related-party transactions.