The Markets Sebi regulator has said that he found “no manufacturing activity” at the Gensol Engineering (EV) electric vehicle plant in Pune with only 2-3 workers present when an official of the National Stock Exchange (NSE) visited the site.
These revelations were part of the provisional order of the Sebi market regulator issued on April 15 after a complaint received in June 2024 alleging the manipulation of the price of the shares of GENSOL and the malplition of funds.
In its order, the Bag Board and Exchange of India (Sebi) found discrepancies, as well as deceptive disseminations to the investors of Gensol Engineering, a company promoted by the Anmol Singh Jaggi brothers and Puneet Singh Jaggi.
One of the revelations came from an investigation carried out by the NSE, which revealed a lack of manufacturing activity at the EV plant in Gensol, Gensol Electric Vehicle Private Ltd, in Chakan in Pune.
Duration A visit to the site to the installation on April 9, an NSE official found only 2-3 workers present.
“It was discovered that there was no manufacturing activity at the plant with only 2-3 workers present there. The NSE official requested details of the unit’s electricity bills and it was observed that the maximum amount billed by the Mahavitarn Duration for the last 122.
“Therefore, it can be inferred that it has not been a manufacturing activity on the plant site that is on a leased property,” Sebi revealed in his provisional order approved on April 15.
The visit followed a Gensol announcement to the stock exchanges on January 28, 2025, claiming that he had recovered early orders for 30,000 units of his newly released EVs exhibited in the Bharat Mobility Global Expo 2025.
However, when reviewing the documents from the company, Sebi discovered that the orders were memorandum of understandings (MOU) entered with nine entities for 29,000 cars.
The mous were in the nature of an expression of disposal without reference to the price of the vehicle or delivery schedules.
Therefore, Prima Facie seemed that the company was revelations of mizleading to investors, said Sebi.
In another dissemination dated January 16, 2025, Gensol informed exchanges regarding a strategic link with Refex Green Mobility LTD “for the transfer of 2,997 four -wheel electric vehicles” to REFEX.
As part of the link, Refex had to assume the existing loan of Gensol or 315 million rupees. However, in a dissemination dated March 28, the acquisition proposed by REFEX was withdrawn.
In another dissemination of February 25, 2025, Gensol informed the exchanges that a non -binding terms for RS 350 million rupees for a strategic transaction that implies the sale of the American subsidiary of Gensol, Scorpius trackers inc.
It was observed that the American subsidiary was incorporated on July 22, 2024.
When Sebi probes with respect to the basis of said valuation of RS 350 million rupees, Gensol could not present any explanation or justification.
These were discovered in a Sebi investigation, which well facie, revealed “Mal-utilization and deviation of the company’s funds in a fraudulent way by its promoters directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who is also the direct being.
Gensol said RS 977.75 million rupees on loans from IREDA and PFC between FY22 and FY24. Of the loan, RS 663.89 million rupees were destined to buy 6,400 EV. However, Gensol admitted to having acquired only 4,704 electric vehicles, worth RS 567.73 million rupees, as confirmed by the GOS supplier.
Since gensol was also obliged to provide a capital contribution of 20 percent, the total disbursement should have been RS 829.86 million rupees, leaving an amount not accounted for by RS 262.13 million rupees.
Sebi’s investigation discovered that Meeante funds for EV purchases were enrupted to Gensol or entities linked to Jaggi Brothers.
Some of the funds were used for personal expenses of the promoters, such as the purchase of a luxury apartment, transfers to nearby relatives and investments that benefit private entities owned by the promoters.
In response to these governance lapses, Sebi Tok tok several of the strict measures, including the prohibition of gensol and its promoters-Jaggi Brothers from accessing the stock market until new notice.
In addition, he prohibited the Jaggi brothers from occupying any direction or key management address in Gensol.
In addition, Sebi ordered Gensol Engineering to put his division of scheduled shares in the relationship or 1:10 waiting.
After the order, the brothers renounced as directors of the company.