Gensol Engineering's promoter and BluSmart founder Anmol Singh Jaggi diverted funds to purchase an apartment in The Camellias in DLF Gurgaon, said the Securities and Exchange Board of India (Sebi) in an interim order on Tuesday.
The markets regulator barred Gensol and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities markets. It also paused the company's share split on grounds of fund misappropriation and stock price manipulation
Gensol Engineering's promoter and BluSmart founder Anmol Singh Jaggi diverted funds to purchase an apartment in The Camellias in DLF Gurgaon, said the Securities and Exchange Board of India (Sebi) in an interim order on Tuesday.
The markets regulator barred Gensol and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities markets. The order was passed on a complaint filed in June 2024 for manipulation of share price and diversion of funds from GEL. Sebi also paused the company's share split on grounds of fund misappropriation and stock price manipulation.
Sebi order is the latest blow to Gensol after credit down grades by rating agencies, liquidity crunch and cancelled deal for EV assets transfer.
"(The) funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, DLF Gurgoan, in the name of a firm where the MD of Gensol (Anmol Singh Jaggi) and his brother are designated partners," the Sebi order said.
Sebi said that in September 2022, the solar consultancy firm received a loan amount of Rs 71 crore from Ireda, an NBFC for promoting green financing, in its GEL Trust and Retention Account IREDA Limited. The loan was reportedly taken to procure electric vehicles. Another Rs 26 crore was transferred to the Trust account from an internal account, raising the amount to Rs 97 crore.
In October 2022, the Sebi order said, the funds were transferred to Go-Auto, a car dealer linked to Gensol. Out of the total amount, GoAuto immediately transferred Rs 50 crore to Capbridge, a disclosed related party of Gensol.
Three days later, Capbridge transferred Rs 42.94 crore to DLF Limited. "As per information provided by DLF (email dated December 17, 2024), the above payment was made towards consideration for the purchase of an apartment in the project The Camellias," the Sebi order noted.
The markets regulator also observed multiple instances of loan defaults by Gensol. However, the company did not disclose the same in its statements for the months of December 2024, January 2025 and February 2025 submitted to the credit rating agencies .
Rating agencies Care Rating and ICRA in March had downgraded Gensol's loans as lenders had informed the agencies about the payment delays. ICRA had alleged that the company falsified some documents related to its debt servicing track record.
The Sebi order noted that from FY22 to FY24 Gensol received over Rs 977 crore from Ireda and Power Finance Corporation (PFC). Of the total fund, Rs 663 crore were to be used to purchase electric vehicles while Gensol was to provide an additional equity (margin) contribution of 20%, bringing the total expected deployment of approximately Rs. 829.86 crore for the purchase of 6,400 electric vehicles.
The purchased vehicles were to be leased to BluSmart.
But in its response to the Sebi, Gensol acknowledged that it had procured only 4,704 electric vehicles worth Rs 567 crore. "Based on these figures, an amount of Rs. 262.13 crore (Rs 829.86 crore – Rs 567.73 crore) remains unaccounted, even though more than a year has passed since the company availed the last tranche of the above mentioned financing," the Sebi order said.
The Sebi order battered the stock of Gensol on Tuesday. On a day when the broader market indices surged over 2%, Gensol stock ended 2.76% lower to settle at Rs 129.