SEBI confirms interim order vs Gensol, promoters in funds diversion case
This story was originally published at 20:07 IST on 30 July 2025
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--SEBI confirms interim order directions against Gensol Engineering
NEW DELHI – The Securities and Exchange Board of India Wednesday confirmed its Apr. 15 interim order against Gensol Engineering Ltd. and its promoters and directors, Anmol Singh Jaggi and Puneet Singh Jaggi, barring them from any securities market-related activity, and prohibiting them from holding the position of director or any key managerial role in the company till further orders. SEBI said in Wednesday's confirmatory order the prima facie findings regarding diversion and misutilisation of funds of the company had not been successfully rebutted by the company and the two promoters.
SEBI said a detailed investigation is being carried out and 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, SEBI said in the confirmatory order.
The Jaggis will continue to be barred from the market and from holding managerial or director posts till further orders. With respect to the company the prohibition will also remain in place, but SEBI said it had noted that the company is undergoing insolvency proceedings at the National Company Law Tribunal and an insolvency resolution professional has been appointed.
In the interim order, SEBI had prima facie found that loans worth INR 967 million were taken by the company from Power Finance Corp. Ltd. and the funds were diverted to promoter and promoter-linked entities bypassing the stated end-use of the PFC loan. The market regulator also found that INR 375 million out of a total loan of INR 1.71 billion taken by Gensol's subsidiary, Gensol EV Lease, from Indian Renewable Energy Development Agency Ltd. was ultimately transferred to Anmol Singh Jaggi.
SEBI had said in that interim order that funds were diverted largely using the pretext of buying electric vehicles intended for leasing to a related party. The diversion of funds by promoter entities reflected a culture of weak internal control where even ring-fenced borrowings from institutional creditors were re-routed at the total discretion of the promoters, SEBI had said in the interim order. End
Reported by Rajesh Gajra
Edited by Tanima Banerjee
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