In his order, SEBI also found anomalies to a company promoted by Gensol Engineering for investors with misleading revelations for investors. File | Photo Credit: Reuters
Markets Regulator Securities and Exchange Board of India (SEBI) has said that it has found “no manufacturing activity” at the Electric Vehicle (EV) plant of Gensol Engineering in Pune, which has only two to three laborers, when a National Stock Exchange (NSE) officer visited the site.
These revelations were part of the interim order of SEBI’s regulator SEBI, which was issued on April 15, after a complaint received in June 2024, was accused of manipulation of Gensol’s share price and misuse of money.
In his order, SEBI also found anomalies to a company promoted by Gensol Engineering for investors with misleading revelations for investors.
One of the revelations came from an investigation conducted by NSE, which revealed the lack of manufacturing activity in Gensol’s EV plant – Jensol Electric Vehicle Private Limited in Chakan, Pune.
During a site trip for convenience on 9 April, an NSE officer found only two to three laborers present.
“It was found that there was no manufacturing activity in the plant with only 2-3 laborers. The NSE officer called for details of the electricity bills of the unit and it was observed that the maximum amount bill by Maharoatran during the last 12 months was for ₹ 1,57,037.01 December 2024.
“Therefore, it can be estimated that there is no manufacturing activity on the plant site that is on a leased property,” SEBI revealed in its interim order passed on 15 April.
The visit claimed on January 28, 2025 after an announcement by Gensol for stock exchanges that it had received earlier for 30,000 units of its newly launched EVS shown at the Bharat Mobility Global Expo 2025.
However, on reviewing the documents provided by the company, SEBI found that the orders were Memorandum of Intelligence (MUS), entered with nine institutions for 29,000 cars.
Mouss were in the nature of expression of desire with no reference in terms of the price of vehicle or distribution program.
Therefore, the prima facial appeared that the company was making misleading revelations to investors, SEBI said.
In another disclosure on January 16, 2025, Gensol informed exchanges about a strategic tie-up with Refex Green Mobility Limited for Refex.
As a part of the tie-up, Refex had to take the current loan of Gensol to take an existing loan of ₹ 315 crore. However, in a manifestation on 28 March, the acquisition proposed by the Refex was withdrawn.
On February 25, 2025, in another disclosure, Gensol informed the exchanges that he signed a non-intellectual term sheet for 350 crores, for a strategic transaction associated with the sale of Gensol’s American assistant Scorpio Trackers Inc..
It was noted that the American subsidiary was included on 22 July 2024.
When the basis of such an evaluation of 350 crores was investigated by SEBI, Jensol failed to present any explanation or justification.
They were exposed in a SEBI investigation, which Prima Facial fakely revealed the misuse and twist of the fund of the company fund by his promoter director, Anmol Singh Jaggi and Puneet Singh Jaggi, which is also direct beneficiaries of diverted funds “.
Gensol secured Rs. 75 975 crore in loans from Ireda and PFC between FY22 and FY24. Of the loan, 663.89 crore 6,400 was to buy EV. However, Gensol admitted to obtain only 4,704 EVs, priced at 567.73 crores, as confirmed by supplier Go-Auto.
Given that Gensol also needed to provide 20% equity contribution, the total outlay should have been ₹ 829.86 crore, leaving a unattainable amount of ₹ 262.13 crore.
SEBI investigation found that money for EV shopping was often sent back to institutions associated with Jensol or Jagi Brothers.
Some funds were used for the individual expenses of promoters, such as the purchase of a luxury apartments, transfer to close relatives, and investing private institutions owned by promoters.
In response to these governance laps, SEBI took several stringent measures, including restricting Jensol and its promoters – Jaggi Brothers – from reaching the security market until next notice.
In addition, it stopped the Jaggi brothers from having any direction or major management status in Gensol.
Additionally, SEBI directed Gensol Engineering to hold his planned stock on hold in ratio of 1:10.
After the order, the brothers stepped as directors of the company.
Published – April 20, 2025 05:53 pm IST