SEBI has slammed Gensol Engineering for allegedly misleading investors, misappropriating funds, and fabricating claims about its electric vehicle (EV) manufacturing operations.
According to reports, a surprise inspection by the National Stock Exchange (NSE) on April 9 at Gensol’s EV plant in Chakan, Pune, found no manufacturing activity and only 2-3 laborers present. The investigation revealed serious lapses in financial discipline and a complete breakdown of governance. For instance, electricity bills over the past year showed minimal consumption, further raising doubts about the company’s operations.
The SEBI investigation revealed Gensol secured pre-orders for 30,000 electric vehicles at Bharat Mobility Global Expo 2025, but non-binding MoUs with nine entities lacked crucial details like pricing and delivery schedules.
Additionally, Gensol’s January 16 disclosure of a strategic tie-up with Refex Green Mobility for EV transfer and a Rs 350 crore strategic deal with US subsidiary Scorpius Trackers failed to justify valuation when questioned by SEBI.
The probe also revealed Gensol secured loans from IREDA and PFC for 6,400 EVs, but only 4,704 were procured, leaving a gap of Rs 262.13 crore, allegedly diverted for personal use.
SEBI Chief Tuhin Kanta Pandey asserted that Gensol Engineering will be punished for alleged financial fraud, regulatory crackdowns, and a sudden halt in ride bookings.
As a first step, SEBI has ordered Gensol Engineering’s promoters, brothers Anmol and Puneet Singh Jaggi, to step down from their roles at the company.
Meanwhile, BluSmart, the ride-hailing startup co-founded by the Jaggi brothers, abruptly suspended its services on Thursday, leaving users in Delhi-NCR, Bengaluru, and Mumbai stranded and unable to book cabs through the app. The company will initiate a refund within the next 90 days if services do not resume before then.
