The Securities and Exchange Board of India (Sebi)issued an interim order on Tuesday against Gensol Engineering, its promoters Anmol Singh Jaggi and Puneet Singh Jaggi. The order pointed out several governance issues and misappropriation of funds, which included the purchase of a luxurious residential apartment by DLF called The Camellias in Gurgaon.
Funds were sent to a firm linked to the promoter via a series of transactions through a car dealer, which was later used to pay for the luxurious property, according to Sebi order.
How were funds diverted?
Gensol Engineering took a loan of ₹71.41 crore from IREDA and transferred ₹26 crore from its own account, totalling up to ₹97 crore. These funds were later transferred to Go-Auto, a car dealership firm related to the company. Go-Auto sent ₹50 crore to Capbridge Ventures, a firm controlled by Anmol Singh Jaggi.
“Bank statements of Capbridge Ventures LLP further showed that it received ₹70 crore in FY 2023 from Go-Auto: ₹50 crore on October 03, 2022 which was partly utilized for acquiring the apartment in The Camellias, DLF,” Sebi’s interim order said.
Sebi alleged that loans taken by Gensol to procure EVs were partly used to buy this premium property in the name of a firm in which Gensol’s MD and his brother are designated partners.
Sebi order
The interim order came after the market regulator probed a complaint received in June 2024, which highlighted serious governance lapses, fund diversion, and falsified document submissions. The complaint alleged share price manipulation and misappropriation of company funds.
“The promoters were running a listed public company as if it were a proprietary firm,” Sebi whole-time member Ashwani Bhatia stated. “Company funds were routed to related parties and used for unrelated expenses—as if the company’s funds were the promoters’ piggy bank,” he added.
Investment in Ashneer Grover’s startup
The bank statement of Anmol Singh Jaggi showed that most of the funds were transferred to related parties and family members or used for personal expenses. He allegedly used ₹50 lakh from the diverted funds to invest in Ashneer Grover’s startup, Third Unicorn and held 2,000 shares in the company as of 31 March 2024.
Previously, Gensol had proposed a stock split in a 1:10 ratio, which was expected to increase retail investor interest. However, Sebi’s interim order has now suspended the corporate action.
About Gensol Engineering
Gensol Engineering Limited specialises in solar power project services along with electric vehicle (EV) manufacturing and leasing. Their solar project services span from project concept to commissioning, including advisory, execution, and operations. Established in 2012, the company was founded by Anmol Singh Jaggi and Puneet Singh Jaggi.
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