SEBI upholds Gensol Engineering’s stock split

16 Apr 2025 , 09:04 AM

The Securities and Exchange Board of India (SEBI) has released an interim order against Gensol Engineering and its promoters Anmol Singh Jaggi and Punit Singh Jaggi. This comes after allegations of fund misappropriation and misleading disclosures. 

As per the reports, SEBI has stopped the promoters from holding any directorial or key managerial positions in the company and has completely restrained them from buying, selling, or dealing in securities.

A forensic auditor shall be appointed by SEBI to investigate Gensol’s financial records. The said report is expected within a period of six months.

The investigation revealed that Gensol Engineering secured ₹977.75 Crore via term loans. Out of this, ₹663.89 Crore was kept aside to purchase 6,400 electric vehicles (EVs). However, only 4,704 vehicles were procured for ₹567.73 Crore, while balance ₹262.13 Crore were unaccounted for.

The stated funds were reportedly transferred back to the promoters of related entities. This includes luxury expenses, real estate buying and other transfers to family members. The investigation also highlighted round-tripping of funds between Gensol companies and Go-Auto, the EV supplier.

Additionally, Gensol’s claims to secure over 30,000 EV orders were found to be based on non-binding Memorandum of Understanding (MoU), key terms such as price and delivery were not outlined.

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