Gensol promoters banned from market for fund diversion

MUMBAI: Markets regulator Sebi on Tuesday barred the two promoters of Gensol Engineering, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities markets until further notice due to fund misappropriation and governance issues.

Additionally, both the promoters have been barred from serving as directors or in any key managerial position in Gensol. The regulator also ordered the company to suspend its recently announced stock split. Sebi has also said that a forensic auditor will be appointed to scrutinise the accounts of Gensol and its associated parties.

The orders by Sebi came after it investigated the company and its promoters. The investigation was started after the regulator received complaints in June 2024 regarding share price manipulation and fund diversion from Gensol.

A29-page interim order by Ashwani Bhatia, whole time member, Sebi said that prima facie findings had shown “misutilisation and diversion of funds of the company in a fraudulent manner by its promoter directors…who are also the direct beneficiaries of the di verted funds”. The report also noted that the company had attempted to mislead Sebi, the credit rating agencies, the lenders and the investors “by submitting forged conduct letters purportedly issued by its lenders”.

This is an interim order and a detailed investigation into the matter is going on. Sebi’s investigation revealed that Anmol and Puneet Singh Jaggi had used part of the funds that were raised through loans for buying electric cars for ride-hailing business under the BluSmart brand to purchase a luxury flat in Delhi. The promoters had also channelised funds to related parties and used the same for unrelated expenses.
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