Markets regulator Securities and Exchange Board of India (Sebi) has stated it discovered “no manufacturing activity” at Gensol Engineering’s electrical automobile (EV) plant in Pune with only two to 3 labourers current when a National Stock Exchange (NSE) official visited the location.
These revelations have been a part of markets regulator Sebi’s interim order issued on April 15 following a criticism acquired in June 2024 alleging manipulation of Gensol’s share value and misappropriation of funds.
In its order, Sebi discovered discrepancies in addition to deceptive disclosures to buyers by Gensol Engineering, an organization promoted by brothers Anmol Singh Jaggi and Puneet Singh Jaggi.
One of the disclosures got here from an investigation performed by the NSE, which revealed a scarcity of manufacturing exercise at Gensol’s EV plant — Gensol Electric Vehicle Private Ltd — at Chakan in Pune.
During a web site go to to the ability on April 9, an NSE official discovered only two to 3 labourers current.
“It was found that there was no manufacturing activity at the plant with only 2-3 labourers present there. The NSE official called for details of electricity bills of the unit and it was observed that the maximum amount billed by Mahavitaran during the last 12 months was ₹1,57,037.01 for December 2024.
“Hence, it can be inferred that there has been no manufacturing activity at the plant site which is on a leased property,” Sebi revealed in its interim order handed on April 15.
The go to adopted an announcement by Gensol to the inventory exchanges on January 28, 2025, claiming it had acquired pre-orders for 30,000 models of its newly launched EVs showcased at the Bharat Mobility Global Expo 2025.
However, upon reviewing the paperwork offered by the corporate, Sebi discovered that the orders have been Memorandum of Understandings (MoUs) entered with 9 entities for 29,000 vehicles.
The MoUs have been within the nature of an expression of willingness with no reference to the worth of the automobile or supply schedules.
Therefore, it prima facie appeared that the corporate was making deceptive disclosures to buyers, Sebi acknowledged.
In one other disclosure dated January 16, 2025, Gensol knowledgeable the exchanges concerning a strategic tie-up with Refex Green Mobility Ltd “for the transfer of 2,997 electric four-wheelers” to Refex.
As part of the tie-up, Refex was to imagine Gensol’s current mortgage of ₹315 crore. However, in a disclosure dated March 28, the proposed takeover by Refex was withdrawn.
In one more disclosure dated February 25, 2025, Gensol knowledgeable the exchanges that it had signed a non-binding time period sheet for ₹350 crore for a strategic transaction involving the sale of Gensol’s U.S. subsidiary Scorpius Trackers Inc.
It was famous that the U.S. subsidiary was integrated on July 22, 2024.
When probed by Sebi concerning the idea of such valuation of ₹350 crore, Gensol didn’t submit any rationalization or rationale.
These have been uncovered in a Sebi probe, which prima facie, revealed “mis-utilization and diversion of funds of the company in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds”.
Gensol secured ₹977.75 crore in loans from IREDA and PFC between FY22 and FY24. Of the mortgage, ₹663.89 crore was meant for buying 6,400 EVs. However, Gensol admitted to buying only 4,704 EVs, price ₹567.73 crore, as confirmed by provider Go-Auto.
Given that Gensol was additionally required to supply 20% fairness contribution, the overall outlay ought to have been ₹829.86 crore, leaving an unaccounted-for quantity of ₹262.13 crore.
The Sebi probe discovered that funds meant for EV purchases have been typically routed again to Gensol or entities linked to Jaggi brothers.
Some of the funds have been used for private bills of the promoters, comparable to the acquisition of a luxurious house, transfers to shut kinfolk, and investments benefiting personal entities owned by the promoters.
In response to those governance lapses, Sebi took a number of stringent measures, together with prohibiting Gensol and its promoters — Jaggi brothers — from accessing the securities market till additional discover.
Also, it barred the Jaggi brothers from holding any directorship or key administration place in Gensol.
Additionally, Sebi directed Gensol Engineering to place its deliberate inventory break up into the ratio of 1:10 on maintain.
Following the order, the brothers stepped down as the corporate’s administrators.
Published – April 20, 2025 05:53 pm IST
