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Flat in Camellias, golf sets, and foreign trips: How Gensol’s promoters siphoned funds

Entrackr · 3d

Flat in Camellias, golf sets, and foreign trips: How Gensol’s promoters siphoned funds SEBI has taken strict action against Gensol Engineering Limited’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, removing them from all directorial roles within the company and barring them from accessing the securities market. According to SEBI’s interim order dated April 15, 2025, the promoters of Gensol Engineering Limited siphoned off hundreds of crores in company funds—borrowed for the purchase of electric vehicles meant for their affiliate BluSmart—for personal and related-party gains, including the purchase of a luxury apartment in Gurgaon, golf accessories, foreign currency, and travel expenses. Gensol Engineering Limited raised Rs 977.75 crore in term loans from government-backed lenders IREDA and PFC to procure 6,400 electric vehicles (EVs). However, only 4,704 EVs were actually purchased for Rs 567.73 crore. SEBI’s forensic analysis found that Rs 262.13 crore remains unaccounted for, while Rs 207.27 crore was transferred to vendor Go-Auto but not utilized for vehicle procurement. Instead, a significant portion of these funds was funneled back from Go-Auto to entities controlled by the Jaggi brothers. For example, Rs 50 crore routed via Capbridge Ventures LLP—where both promoters are designated partners—was used to purchase a luxury apartment at DLF Camellias, Gurgaon. The transaction, cleverly layered through multiple accounts, underscores a deliberate effort to mask the real end-use of the funds. The misuse didn’t stop there. Related entity Wellray Solar, with deep links to the promoters, received over Rs 424 crore from Gensol between FY23 and FY24, despite having negligible operational credibility. Of this, Rs 246 crore was further distributed to promoter-linked companies and individuals. Anmol and Puneet Singh Jaggi personally received Rs 25.76 crore and Rs 13.55 crore respectively from Wellray, which was used for personal luxury expenses including foreign currency purchases, high-end consumer goods, credit card payments, and transfers to family members. SEBI also found that Gensol had falsified debt servicing records submitted to credit rating agencies, CARE and ICRA, to maintain its ratings. Conduct letters allegedly issued by lenders IREDA and PFC were found to be forged. The company failed to disclose prolonged defaults that exceeded 30 days—an explicit breach of SEBI’s disclosure norms. The investigation revealed that Wellray, funded by Gensol and its affiliates, extensively traded in GEL’s own shares—conducting transactions worth over Rs 338 crore—raising serious concerns of stock price manipulation. Notably, 99% of Wellray’s trading volume from April 2022 to December 2024 involved Gensol stock. SEBI’s order has not only barred Anmol and Puneet Singh Jaggi from holding any directorial or KMP roles at GEL but also frozen all trading activity for them and the company. Additionally, the regulator has stalled a proposed stock split and appointed a forensic auditor to probe further. SEBI observed that Gensol was operated like a promoter-owned entity, disregarding all norms of corporate governance and fiduciary responsibility. “The Company’s funds were routed to related parties and used for unconnected expenses, as if the Company’s funds were promoters’ piggybank,” the order stated. This case represents one of the most high-profile instances of alleged corporate fraud in recent times, underlining the urgent need for tighter oversight of fund utilization and promoter conduct in India’s public markets.