Markets Regulator SEBI has not found “any manufacturing activity” in the Electric Vehicle (EV) feature of Gensol Engineering in Pune, with only 2-3 laborers present during the site visit by a National Stock Exchange (NSE) officer. The conclusion is part of SEBI’s interim order on 15 April, which was issued in response to a complaint in June 2024, alleging misuse of manipulation and funds by the company by the company.
In its order, the Securities and Exchange Board of India (SEBI), a news agency PTI, said that the Securities and Exchange Board of India (SEBI) of India pointed to the discrepancies and misleading revelations made by Gensol Engineering, which was stated by a news agency PTI.
No activity in EV plant despite grand announcements
An investigation by the NSE revealed that Gensol’s EV assistant, Gensol electric vehicle private limited, Chakan, Pune had no visible construction activity. During the 9 April site inspection, the NSE official said only two to three workers were present in the plant.
“It was found that there was no manufacturing activity in the plant with 2-3 laborers present there. The NSE officer called for details of the electricity bills of the unit and it was observed that the maximum amount bill bills by Maharoatran during the last 12 months was Rs 1,57,037.01 December 2024 for Rs 1,57,037.01 for December 2024.”
The regulator concluded that there was no manufacturing activity on the site, operating from a leased property. Shortly after the announcement of Gennsol on January 28, 2025, the journey took place that it received pre-orders for 30,000 units of its newly launched EVS, shown in India Mobility Global Expo 2025.
However, SEBI found that the order was the Memorandum of Understanding (MUS) signed with nine institutions for only 29,000 vehicles. These mousse values or distribution were no details about the deadline with non-negotiable manifestations of interest, which raised concerns about misleading revelations to investors.
Suspected transaction and fund bend
In another example, Gensol revealed a strategic tie-up with Refex Green Mobility Limited on 16 January 2025 that included the transfer of 2,997 electric for-wheelers. As part of the deal, Refex had to take the current loan of Gensol to the current loan of Rs 315 crore. However, this proposed transaction was later withdrawn, as stated in the disclosure of 28 March.
In addition, on February 25, 2025, Gennsol announced a non-negotiable term sheet signed for strategic transactions of Rs 350 crore associated with the sale of its US-based subsidiary, Scorpious Trackers Inc., in which SEBI said that the subsidiary was included on July 22, 2024, and the Gensol was failed to bail.
These revelations came during an investigation, SEBI said, Prima Feshi indicated that “the fake manner by his promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, fake the fund of funds of the company,” who were also direct beneficiaries.
Between FY22 and FY24, Gensol acquired Rs 977.75 crore in loans from the Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC), out of which Rs 663.89 crore was set for the purchase of Rs 6,400 EV. However, the company admitted to receiving only 4,704 vehicles worth Rs 567.73 crore confirmed by supplier Go-Auto.
Looking at the requirement of 20% equity contribution by Gensol, the total expected outlay was Rs 829.86 crore, which was unaware for Rs 262.13 crore. Sebi’s investigation has revealed that the amount desired for EV procurement was resumed to Jensol or related institutions controlled by Jaggi Brothers. Some funds were allegedly used for individual expenses, including the purchase of a luxury apartments, transfer to relatives, and promoter-linked private institutions.
In response to these findings, SEBI imposed several restrictions. The regulator stopped Gensol and Jaggi Brothers from reaching the security market till the next notice and prevented them from placing any direction or major managerial roles in the company.
SEBI also instructed Gensol to stop its employed 1:10 stock split. After the interim order, both Anmol and Puneet Singh Jaggi stepped as the directors of the company.
