In a major regulatory action, the Securities and Exchange Board of India (SEBI) has barred Anmol Singh Jaggi and Puneet Singh Jaggi, promoters of Gensol Engineering Limited (GEL), from holding any directorial positions in the company. The market regulator has also debarred them from accessing the securities market after uncovering a massive diversion of funds meant for purchasing electric vehicles (EVs) for BluSmart.
How Funds Meant for EVs Were Diverted
Between 2021 and 2024, Gensol took term loans worth ₹978 crore from IREDA and PFC, with ₹664 crore earmarked for buying 6,400 EVs to be leased to BluSmart. The company was also supposed to contribute an additional 20% equity, taking the total expected deployment to ₹830 crore.
However, an exchange filing in February 2025 revealed that only 4,704 EVs (worth ₹568 crore) were procured. SEBI found that ₹262 crore remained unaccounted for, with funds being routed back to Gensol or entities linked to the Jaggi brothers.
Luxury Apartment, Golf Sets & Personal Expenses Funded by Company Money
SEBI’s investigation uncovered shocking details:
- ₹42.94 crore was transferred to DLF for an apartment in The Camellias, a luxury project in Gurgaon, bought in the name of a firm where the Jaggi brothers were partners.
- Wellfray Solar Industries, a connected entity, received ₹424.14 crore, of which ₹246.07 crore went to related parties, including Anmol Jaggi (₹25.76 crore) and Puneet Jaggi (₹13.55 crore).
- Personal expenses funded by diverted money included:
- ₹26 lakh for a TaylorMade golf set
- ₹6.2 crore transferred to their mother, Jasminder Kaur
- ₹2.99 crore to Anmol’s wife, Mugdha Kaur Jaggi
- ₹1.86 crore for foreign currency purchases
- Payments to Titan, DLF Homes, and MakeMyTrip for personal use
SEBI’s Stern Remarks on Corporate Governance Failure
SEBI’s interim order, released on April 15, slammed the promoters for treating Gensol like their “personal piggy bank”. The regulator noted:
“What has been witnessed is a complete breakdown of internal controls and corporate governance norms in Gensol, a listed company. The promoters ran it as if it were their proprietary firm.”
The diverted funds could eventually lead to write-offs, hurting investors’ interests.
What’s Next?
With SEBI’s interim order in place, the Jaggi brothers are now barred from market dealings and directorships. The case highlights the risks of weak corporate governance and the need for stricter oversight in listed companies.
Will this lead to stricter regulations for green energy funding? Only time will tell.
Stay tuned for more updates on this developing story.
