Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol Engineering Ltd, have stepped down from their positions in the company following the Securities and Exchange Board of India's (SEBI) damning interim order accusing them of large-scale financial misconduct. The development triggered a sharp sell-off in Gensol’s shares which slumped to their 52-week low on both, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
In exchange filings made late on Monday, Anmol Singh Jaggi, who served as managing director (MD) and Puneet Singh Jaggi, whole-time director (WTD), cited the SEBI order dated 15 April 2025 as the reason for their resignations. “I am resigning due to the direction given under SEBI Interim Order,” both brothers wrote in their respective letters, effective from the close of business hours on 12 May 2025.
The resignations come less than a month after SEBI barred the Jaggi brothers and Gensol Engineering from accessing the securities markets, accusing them of orchestrating a 'brazen' scheme to divert company funds into personal ventures and shell entities. The regulator’s 29-page interim order alleges the promoters used Gensol as a personal piggy bank — redirecting funds meant for electric vehicle (EV) infrastructure and procurement into luxury real estate, family-controlled companies, and even stock manipulation operations.
SEBI has also prohibited the Jaggi brothers from serving as directors or key managerial personnel in any listed entity. A forensic audit of Gensol and its network of related companies is currently underway.
Despite starting the day in deep red, Gensol shares staged a surprising recovery on Tuesday, hitting the upper circuit limit by market close. The sharp rebound came after the resignation of promoters, the Jaggi brothers, which appears to have offered a brief boost in investor sentiment.
On the BSE, the stock initially plummeted 4.99% to touch a 52-week low of Rs51.84, but later bounced back to end the session at Rs57.28, up 4.99% — the upper circuit for the day. A similar trend was seen on the NSE, where the share price sank 5% to Rs51.25 in early trade before recovering to close at Rs56.64, again up 4.99%.
From a high of Rs1,126 per share in 2023, Gensol’s stock has plummeted by nearly 90%, wiping out more than Rs3,800 crore in market capitalisation.
Earlier this month, while disposing an appeal filed by the Ahmedabad-based company seeking a stay on an interim order passed by SEBI, the securities appellate tribunal (SAT) directed the market regulator to pass a final order within four weeks in this matter.
During the hearing, senior counsel Chetan Kapadia, representing SEBI, vehemently objected to a stay on the 15th April order sought by Gensol. While arguing that the alleged forgery of the no-objection certificates (NOCs) submitted by Gensol is 'just the tip of the iceberg', he insisted that the company’s transactions need to be examined in depth.
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 showed 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.
SEBI’s investigation uncovered a complex web of forged documents, circular fund flows and dummy entities, all designed to mislead investors, rating agencies and regulators. Among the private ventures named in the order is BluSmart, an EV start-up promoted by the Jaggi brothers.
The regulator has also blocked Gensol’s proposed stock split, warning that it could mislead retail investors amid the ongoing investigation.
With nearly 110,000 public shareholders affected and deeper scrutiny expected from regulatory bodies, the crisis at Gensol marks one of the most high-profile governance failures in recent times. Further regulatory action is likely once the forensic audit is complete.
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