Introduction: A Green Dream or a Lavish Illusion?
What started as a promising green energy story is now under SEBI’s microscope, and the revelations are nothing short of shocking. Gensol Engineering, once hailed for its electric vehicle (EV) leasing ambitions, now finds itself buried under serious allegations of financial misconduct. If you’ve been tracking the gensol share price, brace yourself—because this scandal goes deep.
From luxury apartments in Gurgaon to a Rs 26-lakh golf set, SEBI’s interim order paints a tale of misused funds, circular transactions, and blatant misuse of loans meant for EV procurement. Let’s break this down in a conversational (and yes, jaw-dropping) style.
1. Gensol’s Grand EV Plan – What Was Promise?
Between FY22 and FY24, Gensol raised a whopping Rs 977.75 crore in term loans. The money came from government-backed financial giants—IREDA and PFC. The plan? Procure 6,400 electric vehicles for leasing to BluSmart, a related party.
On paper, it looked like a well-intentioned green initiative. But as we’ve now learned, the numbers just didn’t add up.
2. The EV Delivery Gap – Where Did the Cars Go?
Go-Auto, the supplier, confirmed only 4,704 EVs worth Rs 567.73 crore were actually delivered. So… what happened to the rest of the funds?
Let’s do the math: Rs 977.75 crore raised, Rs 567.73 crore used. That leaves Rs 410 crore unaccounted for. And out of that, Rs 262 crore? Totally missing.
3. SEBI’s Trail of Transactions – A Financial Maze
SEBI’s investigation uncovered a complex web of transactions that looked less like EV procurement and more like a money-shuffling carnival.
Funds were routed from Gensol to Go-Auto, then swiftly move to entities like Capbridge Ventures LLP, Matrix Gas, and Wellray Solar—all linked to the promoters. In some cases, money moved out and circled back in, creating what SEBI described as “circular loops.”
4. Gurgaon’s Camellias Flat – Booked in Mom’s Name, Paid by Gensol?
One of the biggest shockers? Rs 50 crore was transferr from Go-Auto to Capbridge the same day Go-Auto received money from Gensol. A few days later, Capbridge paid DLF Ltd Rs 42.94 crore for a luxury flat in The Camellias, Gurgaon.
The flat was originally book Jasminder Kaur, the mother of CEO Anmol Singh Jaggi. The Rs 5 crore advance? Yep, that too came from Gensol funds.
5. Lavish Spending – Golf Sets, Foreign Currency, and Travel
Anmol Singh Jaggi wasn’t shy about splurging either. SEBI found:
- Rs 26 lakh spent on a TaylorMade golf set
- Rs 1.86 crore used to buy foreign currency (AED)
- Rs 9.95 lakh in credit card payments
- Rs 3 lakh for travel bookings on MakeMyTrip
His brother Puneet Singh Jaggi followed suit—Rs 13.5 crore was trace to personal transfers, AmEx card payments, and more.
6. Preferential Allotments – Funded by Gensol’s Own Money?
SEBI found another jaw-dropper: Rs 10 crore, traced from PFC to Capbridge and then to Go-Auto, was use the promoters to participate in a preferential share allotment of Gensol itself. In other words, they used company funds to buy back into their own company.
7. Faking Pre-Orders – Smoke and Mirrors
As if all this weren’t enough, SEBI noted that Gensol had issued inflated press releases with non-binding EV orders and MoUs. These were passed off as confirm business deals to pump the perception of growth.
Even worse, a site inspection at Gensol’s EV plant in Chakan revealed almost no activity—just 2–3 workers and minimal power usage. For a plant supposedly churning out EVs, that’s a big red flag.
8. SEBI Comes Down Hard – Directors Barred, Stock Split Halted
SEBI didn’t hold back. Anmol and Puneet Singh Jaggi are now barred from holding any director or managerial roles at Gensol Engineering. Their ability to trade securities has been frozen.
To top it off, SEBI has halted the company’s planned stock split, which it feared would lure unsuspecting retail investors into a potentially unstable stock.
9. The Aftermath – What Happens Next for Gensol?
A forensic audit has order, and its findings will critical. If more evidence of wrongdoing surfaces, the consequences could escalate. For now, investor confidence is shaken—and the gensol share price is bearing the brunt.
As the situation unfolds, many are left wondering: How did internal controls collapse so spectacularly at a company entrusted with nearly a thousand crores?
10. What This Means for Retail Investors
Retail investors must tread carefully. Always research thoroughly before jumping into a stock that looks like it’s riding the EV wave. Flashy press releases and “green” labels can be misleading, especially when internal audits and regulators are telling a different story.
Right now, gensol share price might look like a bargain. But with such massive governance issues looming, caution is key.
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Conclusion
Gensol’s fall from grace is more than a financial scandal—it’s a wake-up call for the entire clean energy ecosystem. Transparency, accountability, and sound governance are non-negotiable. Without them, even the greenest of dreams can rot from the inside.
If India is serious about its EV ambitions, we need companies that can deliver not just on vehicles—but on trust.
