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SEBI Imposes Market Ban on Gensol Engineering for Fund Diversion and Governance Failures

The regulator halts stock split, bars promoters from key roles, and uncovers extensive financial misconduct involving misuse of funds for personal gain.

Anmol Singh Jaggi is accused of diverting company funds for personal use.
SEBI Bhavan at BKC Bandra in Mumbai.
BluSmart
SEBI had written in its order that the company had raised ₹975 crore in loans from institutions such as Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) for purchasing electric vehicles (EVs) for its ride hailing company BluSmart.

Overview

  • The Securities and Exchange Board of India (SEBI) has barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities markets until further notice.
  • SEBI's investigation revealed Rs. 262.13 crore in unaccounted funds, originally allocated for electric vehicle purchases, with significant amounts diverted for personal expenses.
  • Funds were misused for personal benefits, including the purchase of a luxury apartment in Gurugram, credit card bills, and investments in unrelated ventures.
  • The company allegedly submitted forged documents to mislead regulators, credit rating agencies, and lenders, highlighting severe corporate governance lapses.
  • SEBI has also directed a forensic audit of Gensol's accounts and suspended the company's planned 1:10 stock split to protect investor interests.