A Scandal Unfolds
In a shocking revelation that’s rocked India’s electric vehicle and startup ecosystem, the Securities and Exchange Board of India (SEBI) has accused Gensol Engineering Ltd promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — of diverting public loans meant for electric vehicle (EV) procurement to fund a lavish lifestyle. The interim order, released on April 15, paints a damning picture of misgovernance and financial misconduct.
In this article, we take a closer look at how Gensol Engineering’s promoters allegedly misused EV loan funds, the web of related-party transactions, and SEBI’s strong regulatory response.
Credits: MoneyControl
EV Loans Gone Off Track
Between 2021 and 2024, Gensol Engineering secured Rs 978 crore in loans from public institutions — IREDA and PFC — for the purpose of purchasing 6,400 EVs to be leased to ride-hailing company BluSmart. The total expected deployment, including a 20% equity margin, stood at Rs 830 crore.
But the math doesn’t add up.
As of early 2025, Gensol had procured only 4,704 EVs worth Rs 568 crore, leaving a gaping shortfall of Rs 262 crore — funds that remain unaccounted for even a year after receiving the last loan tranche.
A Trail of Suspicious Transactions
SEBI’s investigation unearthed a sophisticated web of layered transactions involving multiple related-party entities. Here’s how the money moved:
- Funds were transferred from Gensol to Go-Auto, the EV supplier.
- Go-Auto then redirected the money to other entities, notably Capbridge, a firm related to Gensol’s promoters.
- Capbridge transferred Rs 42.94 crore to DLF, which SEBI confirmed was used to purchase a luxury apartment in the elite The Camellias project in Gurugram.
SEBI stated: “Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in the name of a firm where the MD of Gensol and his brother are designated partners.”
Living Large: Golf Sets, Diamonds & Foreign Currency
It doesn’t stop at real estate. SEBI’s scrutiny of the brothers’ personal bank statements revealed massive personal expenditures funded by diverted company money:
- Rs 26 lakh on a TaylorMade golf set
- Rs 6.2 crore transferred to their mother, Jasminder Kaur
- Rs 2.99 crore to Mugdha Kaur Jaggi, Anmol’s wife
- Rs 1.86 crore spent to purchase foreign currency
- Rs 17.28 lakh at Titan Company (presumably for luxury watches or jewellery)
- Rs 3 lakh to MakeMyTrip for personal travel
- Rs 11.75 lakh more to DLF Homes
Web of Related Parties: Wellfray & Capbridge
SEBI also flagged Wellfray Solar Industries, another entity with historical ties to the Jaggi brothers. Gensol paid Rs 424.14 crore to Wellfray, out of which Rs 382.84 crore was funneled to other entities, including Rs 25.76 crore to Anmol and Rs 13.55 crore to Puneet directly.
This pattern of fund movement, according to SEBI, shows a clear attempt to “round-trip” the loans and disguise the true end-use.
SEBI’s Strong Response
In its interim order, SEBI has taken decisive action:
- Removed Anmol and Puneet Singh Jaggi from any directorial positions at Gensol
- Barred them from accessing the securities market
- Put Gensol’s stock split plan on hold
SEBI remarked: “The promoters were running a listed public company as if it were a proprietary firm… using the company’s funds like their personal piggybank.”
Investor Fallout
The market reacted swiftly. Gensol shares hit the lower circuit, falling 5% to Rs 122.68 apiece, with further volatility expected as the probe deepens. Investor confidence has taken a severe hit, with many calling for stricter governance norms for listed companies with public funds at stake.
Credits: Investment Guru
What Lies Ahead?
This incident has not only tainted the reputation of a once-promising clean energy player but has also raised serious questions about oversight, transparency, and ethics in India’s booming EV and startup sector. With SEBI intensifying its watch, the message is loud and clear — misuse of funds won’t go unpunished.
