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Economic Times
an hour ago
- Business
- Economic Times
Sebi confirms Gensol fraud, finds promoters diverted funds, falsified records
Securities and Exchange Board of India (Sebi) on Monday passed a confirmatory order against Gensol Engineering and its promoter-directors Anmol Singh Jaggi and Puneet Singh Jaggi upholding the April order that had prima facie found them indulging in fund diversion and falsifications of documents. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Securities and Exchange Board of India (Sebi) on Monday passed a confirmatory order against Gensol Engineering and its promoter-directors Anmol Singh Jaggi and Puneet Singh Jaggi upholding the April order that had prima facie found them indulging in fund diversion and falsifications of a 33-page order, the regulator noted that the company and Jaggi brothers failed to effectively rebut the findings of the April 15 interim order regarding falsification of Conduct Letters and diversion/ mis-utilisation of funds by the listed solar EPC and EV leasing firm."I find that the chaprima facie findings regarding diversion / mis-utilization of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation in this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties. The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," the order rejected the arguments put forward by the brothers who challenged the order saying that it was not investigation began in June 2024 following a complaint alleging price manipulation and fund misuse. Sebi's probe revealed that Gensol submitted fake Conduct Letters to credit rating agencies ICRA and CARE Ratings , purportedly issued by lenders IREDA and PFC, to conceal debt servicing defaults. These letters were later disowned by the lenders.A major concern highlighted by Sebi was the diversion of funds from term loans amounting to Rs 977.75 crore, mostly meant for the purchase of 6,400 electric vehicles (EVs). Gensol claimed it procured 4,704 EVs, costing Rs 567.73 crore, yet transferred Rs 775 crore to Go-Auto—the alleged supplier—leaving over Rs 207 crore trail of funds, according to Sebi, showed that money sent to Go-Auto was routed back to Gensol and then allegedly diverted to entities controlled by the Jaggi family. Notably, part of the funds was used to purchase luxury real estate, including an apartment in DLF's premium Camellias project, and for personal expenses such as foreign currency purchases and luxury Sebi noted that Gensol misled the public by announcing pre-orders for 30,000 EVs that were in fact non-binding MoUs, and its Pune-based EV manufacturing facility showed no active production during regulator has confirmed restrictions placed on the company and its promoters from accessing the securities market. It has also directed a forensic audit of Gensol and related findings suggest serious breaches of the SEBI Act, 1992, PFUTP Regulations, and LODR norms, including misuse of shareholder funds and inadequate disclosures on related party transactions. The matter remains under further investigation.
Time of India
an hour ago
- Business
- Time of India
Sebi confirms Gensol fraud, finds promoters diverted funds, falsified records
Securities and Exchange Board of India (Sebi) on Monday passed a confirmatory order against Gensol Engineering and its promoter-directors Anmol Singh Jaggi and Puneet Singh Jaggi upholding the April order that had prima facie found them indulging in fund diversion and falsifications of documents. In a 33-page order, the regulator noted that the company and Jaggi brothers failed to effectively rebut the findings of the April 15 interim order regarding falsification of Conduct Letters and diversion/ mis-utilisation of funds by the listed solar EPC and EV leasing firm. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Public Policy Leadership Healthcare Digital Marketing MBA Data Science Product Management Management Operations Management Design Thinking Cybersecurity others Degree Project Management Data Science Technology PGDM Others Data Analytics CXO Finance Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details "I find that the chaprima facie findings regarding diversion / mis-utilization of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation in this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties. The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," the order said. Sebi rejected the arguments put forward by the brothers who challenged the order saying that it was not warranted. The investigation began in June 2024 following a complaint alleging price manipulation and fund misuse. Sebi's probe revealed that Gensol submitted fake Conduct Letters to credit rating agencies ICRA and CARE Ratings , purportedly issued by lenders IREDA and PFC, to conceal debt servicing defaults. These letters were later disowned by the lenders. Live Events A major concern highlighted by Sebi was the diversion of funds from term loans amounting to Rs 977.75 crore, mostly meant for the purchase of 6,400 electric vehicles (EVs). Gensol claimed it procured 4,704 EVs, costing Rs 567.73 crore, yet transferred Rs 775 crore to Go-Auto—the alleged supplier—leaving over Rs 207 crore unaccounted. The trail of funds, according to Sebi, showed that money sent to Go-Auto was routed back to Gensol and then allegedly diverted to entities controlled by the Jaggi family. Notably, part of the funds was used to purchase luxury real estate, including an apartment in DLF's premium Camellias project, and for personal expenses such as foreign currency purchases and luxury goods. Additionally, Sebi noted that Gensol misled the public by announcing pre-orders for 30,000 EVs that were in fact non-binding MoUs, and its Pune-based EV manufacturing facility showed no active production during inspections. The regulator has confirmed restrictions placed on the company and its promoters from accessing the securities market. It has also directed a forensic audit of Gensol and related entities. Sebi's findings suggest serious breaches of the SEBI Act, 1992, PFUTP Regulations, and LODR norms, including misuse of shareholder funds and inadequate disclosures on related party transactions. The matter remains under further investigation.
Time of India
an hour ago
- Business
- Time of India
Sebi confirms ban on Gensol, Jaggi brothers in fund diversion case
Markets regulator Sebi on Wednesday upheld its interim order restraining Gensol Engineering and its former top executives Anmol Singh Jaggi and Puneet Singh Jaggi from the securities markets on concerns over fund diversion and corporate governance failures. Additionally, the regulator said Jaggi brothers , also cofounders of EV ride-hailing firm BluSmart Mobikity , would continue to be debarred from holding the position of a director or key managerial personnel in Gensol . The final order comes as the company undergoes insolvency proceedings under the supervision of a court-appointed professional. The brothers have been accused by Sebi of siphoning off loan funds from their publicly-listed company Gensol for personal use, raising concerns over corporate governance and financial misconduct. In a detailed confirmatory order, Sebi stated that the prima facie findings of misappropriation of funds and falsification of conduct letters to CRAs -- initially highlighted in its April 2025 interim order-- remain unrebutted by the company's promoters. "... prima facie findings regarding diversion / mis-utilisation of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation into this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties. "The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," Sebi Whole Time Member Kamlesh C Varshney said in his order. Given these developments, Sebi said it finds no reason to lift or modify the restrictions imposed earlier and accordingly confirmed the directions of its interim order. However, the regulator clarified that the directions concerning Gensol will remain subject to any further orders from the competent tribunal or court overseeing the insolvency process.
Economic Times
2 hours ago
- Business
- Economic Times
Sebi confirms ban on Gensol, Jaggi brothers in fund diversion case
Markets regulator Sebi on Wednesday upheld its interim order restraining Gensol Engineering and its former top executives Anmol Singh Jaggi and Puneet Singh Jaggi from the securities markets on concerns over fund diversion and corporate governance failures. Additionally, the regulator said Jaggi brothers, also cofounders of EV ride-hailing firm BluSmart Mobikity, would continue to be debarred from holding the position of a director or key managerial personnel in Gensol. The final order comes as the company undergoes insolvency proceedings under the supervision of a court-appointed professional. The brothers have been accused by Sebi of siphoning off loan funds from their publicly-listed company Gensol for personal use, raising concerns over corporate governance and financial a detailed confirmatory order, Sebi stated that the prima facie findings of misappropriation of funds and falsification of conduct letters to CRAs -- initially highlighted in its April 2025 interim order-- remain unrebutted by the company's promoters."... prima facie findings regarding diversion / mis-utilisation of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation into this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties. "The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," Sebi Whole Time Member Kamlesh C Varshney said in his order. Given these developments, Sebi said it finds no reason to lift or modify the restrictions imposed earlier and accordingly confirmed the directions of its interim order. However, the regulator clarified that the directions concerning Gensol will remain subject to any further orders from the competent tribunal or court overseeing the insolvency process.
Time of India
2 hours ago
- Business
- Time of India
Sebi confirms ban on Gensol, Jaggi brothers in fund diversion case
Academy Empower your mind, elevate your skills Markets regulator Sebi on Wednesday upheld its interim order restraining Gensol Engineering and its former top executives Anmol Singh Jaggi and Puneet Singh Jaggi from the securities markets on concerns over fund diversion and corporate governance the regulator said Jaggi brothers , also cofounders of EV ride-hailing firm BluSmart Mobikity , would continue to be debarred from holding the position of a director or key managerial personnel in Gensol The final order comes as the company undergoes insolvency proceedings under the supervision of a court-appointed brothers have been accused by Sebi of siphoning off loan funds from their publicly-listed company Gensol for personal use, raising concerns over corporate governance and financial a detailed confirmatory order, Sebi stated that the prima facie findings of misappropriation of funds and falsification of conduct letters to CRAs -- initially highlighted in its April 2025 interim order-- remain unrebutted by the company's promoters."... prima facie findings regarding diversion / mis-utilisation of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation into this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties."The concrete findings of the investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," Sebi Whole Time Member Kamlesh C Varshney said in his these developments, Sebi said it finds no reason to lift or modify the restrictions imposed earlier and accordingly confirmed the directions of its interim the regulator clarified that the directions concerning Gensol will remain subject to any further orders from the competent tribunal or court overseeing the insolvency process.
