SEBI is conducting a comprehensive investigation into Gensol Engineering. In its interim order dated April 15, the regulator alleged that the company's promoters, the Jaggi brothers, diverted approximately Rs 978 crore in loans—meant for electric vehicle procurement—towards personal luxuries.
Following a SEBI report, the Enforcement Directorate (ED) reportedly raided Gensol Engineering Ltd's offices in Delhi, Gurugram, and Ahmedabad under FEMA provisions. Co-promoter Puneet Singh Jaggi were briefly detained from a Delhi hotel.
The Ministry of Corporate Affairs ( MCA) has initiated a suo motu inquiry into suspected financial irregularities at Gensol Engineering.
NFRA is examining the financial statements of Gensol and BluSmart for the fiscal year 2024, following SEBI's referral due to concerns over fund diversion and governance issues.
The Institute of Chartered Accountants of India (ICAI) is reviewing the statutory audit reports of both companies for FY24, focusing on potential fraud and auditor accountability, its president told the Economic Times. This is the second case after IndusInd Bank where ICAI's Financial Reporting Review Board (FRRB) has taken suo motu action in just over a month.
PFC has filed a complaint with the Economic Offences Wing (EoW) of the Delhi Police, alleging that Gensol submitted falsified documents to secure loans intended for electric vehicle procurement.
SEBI's order revealed that Gensol obtained loans from Power Finance Corporation and IREDA Ltd. for electric vehicle procurement and EPC contracts. However, these funds were allegedly diverted to purchase assets in the names of the promoters, their relatives, or associated shell companies.
Both Jaggi brothers have been barred by SEBI from accessing the securities market and holding directorial positions in listed companies. EV ride hailing firm BluSmart Mobility has appointed Grant Thornton to conduct a forensic audit of its financial records.
