“What has been witnessed in the present matter is a complete breakdown of internal controls and corporate governance norms in Gensol, a listed company,” SEBI’s Whole Time Member Ashwani Bhatia observed in the order dated April 15.
“The promoters were running a listed public company as if it were a propriety firm. The Company’s funds were routed to related parties and used for unconnected expenses, as if the Company’s funds were promoters’ piggybank.”
SEBI’s investigation began after it received a complaint in June 2024 regarding possible share price manipulation and diversion of funds. A probe revealed that Gensol had availed loans of ₹977.75 crore from IREDA and PFC, including ₹663.89 crore specifically for procuring 6,400 electric vehicles (EVs).
However, the company procured only 4,704 EVs worth ₹567.73 crore. The rest of the funds were allegedly routed through a dealer, Go-Auto, to entities linked to the promoters.
In one instance, ₹50 crore was transferred from Go-Auto to Capbridge Ventures LLP — a related party — which was then used to pay DLF Limited towards a luxury apartment in Gurgaon’s The Camellias project.
“It can be noted from the above that funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment,” the order noted.
After defaults by Gensol’s related party BluSmart came to light in early 2025, credit rating agencies CARE and ICRA downgraded Gensol’s ratings to “D”. The downgrade came amid suspicions that documents submitted to prove timely debt servicing were falsified.
SEBI’s investigation confirmed that the “Conduct Letters” and “No Objection Certificates” submitted by Gensol – purportedly issued by IREDA and PFC – were forged. The order stated,
“Both the lenders categorically denied having issued such letters…The Company… continued to submit statements to the CRAs certifying there was no delay or default in servicing any loans.”
A web of connected entities such as Wellray Solar, Capbridge, Matrix Gas and Gensol Consultants were used to channel funds, SEBI said. Wellray alone received ₹424.14 crore from Gensol over two years, of which ₹246.07 crore was transferred to related parties.
From this, Anmol Singh Jaggi and Puneet Singh Jaggi personally received ₹25.76 crore and ₹13.55 crore, respectively, which were subsequently used for personal expenses, family transfers and speculative investments.
For instance, Anmol Singh Jaggi’s transactions included a ₹1.35 crore payment to Batx Energies, foreign currency purchases worth over ₹3 crore, and ₹26 lakh to TaylorMade, related to the purchase of a golf set.
Wellray, despite claiming to be an independent shareholder, was found to have traded heavily in Gensol shares using funds routed from the company and its related parties. Between April 2022 and December 2024, Wellray executed trades worth over ₹338 crore in Gensol’s scrip alone.
“Gensol and its promoters/promoter related entities have funded Wellray for trading in the scrip of Gensol which is a violation of the restrictions contained in section 67 of the Companies Act, 2013,” SEBI noted.
SEBI also found Gensol’s January 2025 announcement of pre-orders for 30,000 EVs to be misleading. An NSE team that visited Gensol’s EV plant in Pune found “no manufacturing activity at the plant with only 2-3 labourers present.” The electricity bill over 12 months never exceeded ₹1.57 lakh, confirming negligible operations.
In another instance, Gensol claimed to have signed a ₹350 crore term sheet to sell a US subsidiary that was incorporated just six months prior. “Gensol has failed to submit any explanation / rationale,” SEBI said.
