In a damning interim order issued on 15th April, market regulator Securities and Exchange Board of India (SEBI) has unmasked what it describes as a brazen scheme by Anmol Singh Jaggi and Puneet Singh Jaggi (the Jaggi brothers), the promoters of Gensol Engineering Ltd (Gensol), to siphon hundreds of crores of rupees from the publicly-listed company into their own private ventures, including electric mobility start-up BluSmart.
SEBI has accused the Jaggi brothers, who co-founded Gensol, of operating the company as their personal fiefdom. Funds raised ostensibly for electric vehicle (EV) procurement and infrastructure development were instead diverted into luxury real estate, family-run firms and stock market manipulation schemes, the market regulator says.
SEBI's 29-page order outlines an elaborate financial web involving shell companies, circular fund flows and forged documents — all pointing to a calculated attempt to loot Gensol’s coffers while duping lenders, credit rating agencies and nearly 110,000 public shareholders.
At the heart of the scam is Go-Auto Private Ltd, the dealer through which Gensol routed Rs775 crore for the purchase of 6,400 EVs. However, only 4,704 EVs were ever delivered, valued at just Rs567.73 crore. The unexplained gap of Rs207 crore, SEBI found, was rerouted to firms linked directly to the Jaggi family.
In one instance, Rs50 crore was transferred from Go-Auto to Capbridge Ventures LLP, a partnership where both Anmol and Puneet Jaggi are designated partners. Of this, nearly Rs43 crore went to DLF Ltd towards the purchase of a luxury apartment in The Camellias at Gurgaon, initially booked in the name of the brothers' mother, Jasminder Kaur. The flat was later re-allocated to Capbridge after a staged reversal of funds.
Capbridge was not the only conduit. Money was also funnelled into entities like Matrix Gas, Wellray Solar, Prescinto Technologies, Param Care, GoSolar Ventures, BluSmart and Gensol Ventures — all with deep promoter links. Some of these funds were used to trade in Gensol's own shares, artificially inflating the stock price.
Gensol raised over Rs977 crore in loans from State-owned lenders like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) to expand its EV fleet and execute engineering-procurement-construction (EPC) contracts. SEBI's analysis shows that large portions of these loans were never used for their intended purposes.
Instead, the funds were systematically split, shuffled between internal accounts and funnelled into promoter-controlled companies. In one case, Rs96.69 crore from a PFC loan ended up with entities like Capbridge and Gensol Consultants — again, directly tied to the Jaggis.
Worse, SEBI found instances of circular transactions — where Rs10 crore was passed in a loop through four companies in a single day — solely to create an illusion of genuine business activity.
To keep the scheme afloat, Gensol submitted forged no-default certificates to credit rating agencies (CRAs) and tried to withdraw ratings based on fake no-objection certificates (NOCs). SEBI confirmed that lenders like IREDA and PFC never issued these documents.
Even as Gensol was defaulting on loan repayments, it continued submitting no default statements to CRAs in late 2024 and early 2025 — a direct violation of disclosure norms under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations.
Adding insult to injury, the company also made exaggerated public announcements — like claiming it had pre-orders for 30,000 EVs unveiled at Bharat Mobility Expo 2025. A physical inspection by officials from the National Stock Exchange (NSE) revealed that Gensol's Pune plant was largely idle, with power bills that did not reflect any meaningful production.
SEBI also unearthed that funds diverted from Gensol were recycled back to fund promoter contributions in a preferential share allotment. The Jaggi brothers transferred Rs10 crore — received from Wellray — to Gensol Ventures which then subscribed to Gensol’s equity issue.
Wellray, meanwhile, used more than Rs100 crore — received mostly from Gensol and its allied firms — to buy and sell Gensol shares. From April 2022 to December 2024, 99% of its trading volumes were in Gensol’s scrip, helping create a misleadingly bullish price trend.
"What we are witnessing is not just financial mismanagement — it's a full-scale betrayal of public trust," the order noted. "Promoters were running the company like a personal piggy bank."
In light of these revelations, SEBI has barred Anmol and Puneet Singh Jaggi from acting as directors or key managerial personnel (KMP) in any listed company. Gensol itself is prohibited from proceeding with its proposed stock split — a move regulators believe could mislead new investors.
A forensic audit of Gensol and its related entities has been ordered, and further regulatory actions are expected. The company’s shares, which once peaked at Rs1,126 apiece, are now trading at just Rs133 (as of 11 April 2025)— wiping out over Rs3,800 crore in market value.
With investor confidence shaken and regulatory scrutiny intensifying, the Gensol saga is emerging as one of the most egregious examples of corporate misconduct in recent times — a cautionary tale of how unchecked promoter control can spell doom for public shareholders.
