Gensol Engineering is set to be in sharp focus on April 16, 2025, after the Securities and Exchange Board of India (SEBI) issued a stinging interim order against the company and its promoters, citing serious allegations of fund diversion and fraud.
In the order, SEBI has restrained promoters Anmol Singh Jaggi and Puneet Singh Jaggi from acting as directors or key managerial personnel (KMP) in Gensol Engineering Limited, and barred the company, along with the promoters, from buying, selling, or dealing in securities until further notice.
Key Developments:
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Forensic Audit Ordered: SEBI will appoint a forensic auditor to examine the books of accounts of Gensol Engineering and its related entities. The audit report must be submitted within six months.
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Promoter Restrictions: Anmol and Puneet Singh Jaggi, who are currently promoters and directors, have been barred from holding leadership roles in the company.
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Alleged Fund Diversion: The company reportedly availed term loans of Rs 978 crore from IREDA and PFC, of which Rs 663.89 crore was earmarked to purchase 6,400 electric vehicles. However, Go-Auto, the EV supplier, confirmed delivery of only 4,704 vehicles worth Rs 568 crore, leaving Rs 262 crore unaccounted for.
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Personal Use of Company Funds: SEBI alleged that diverted funds were used by promoters for personal expenses, including purchase of luxury real estate, and were transferred to close relatives.
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Round-Tripping & Market Manipulation: The probe also uncovered instances of round-tripping of funds between Gensol and Go-Auto, and alleged manipulation in Gensol’s own stock by routing funds through Wellray, a private promoter-linked entity.
SEBI has also accused the company and its promoters of misleading credit rating agencies (CRAs), investors, and lenders.
This interim order comes as a major blow to the solar and EV player, raising questions over governance and financial transparency. Gensol Engineering’s stock is expected to witness significant volatility during Tuesday’s trading session.
