Gensol Engineering’s shares hit a 5% lower circuit after the Securities and Exchange Board of India (SEBI) barred promoters Anmol Singh Jaggi and Puneet Singh Jaggi from holding directorial positions and dealing in securities. This action follows allegations of fund diversion and misutilisation.
SEBI’s interim order revealed that Gensol Engineering received ₹977.75 crore in term loans from IREDA and PFC, of which ₹663.89 crore was allocated for procuring 6,400 electric vehicles. However, only 4,704 EVs were purchased for ₹567.73 crore, leaving ₹262.13 crore unaccounted. The diverted funds were allegedly routed to entities linked to the promoters.
The market regulator also halted Gensol’s proposed stock split and has appointed a forensic auditor to further investigate the company’s finances and related parties.
SEBI found that Gensol misled investors by announcing pre-orders for 30,000 electric vehicles based on vague MoUs lacking pricing or delivery details. A site inspection at the company’s Pune plant revealed minimal activity, raising further concerns about operational claims.
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