How the Gensol Scam Started?

The first complaint was filed with the market regulator in June 2024, alleging manipulation of share prices and diversion of funds from GEL. At that time, the stock was trading at around Rs 1,000.

Degrade By Rating Agencies

The market regulator investigated at its own pace, but it only took action after the rating agencies downgraded the company on March 3. The agencies, ICRA and Care Ratings they have downgraded from BBB- to D for its bank loans

They reported that when they requested statements for the term loan, GEL provided documents from all lenders except IREDA and PFC.

Blusmart Scam Exposed:Anmol Singh Jaggi Founder

Instead, GEL only shared Conduct Letters from IREDA and PFC, which indicated that GEL was currently servicing its debt. However, upon confirming with IREDA and PFC about the validity of these Conduct Letters and the No Objection Certificates (NOCs), both lenders categorically denied issuing such documents.

Out of the Rs 977.75 crore term loan obtained from IREDA and PFC, Rs 663.89 crore was designated for purchasing 6,400 EVs. 

However, GEL only procured 4,704 EVs, spending Rs 567.73 crore. SEBI noted that the remaining funds are unaccounted for.

According to the interim order, Rs 42.94 crore from a larger loan secured by Gensol was funnelled through Capbridge Ventures, a company controlled by promoter Anmol Singh Jaggi, to finance the purchase of a luxury apartment in DLF Camellias. Additionally, Rs 6.20 crore was diverted to Anmol Singh Jaggi's mother, while his wife received Rs 2.98 crore.

SEBI’s Comment

The market regulator issued a strongly worded order stating that the promoters were managing a publicly listed company as if it were a private firm. The order states that funds from Gensol (GEL) were diverted to related parties and used for unrelated expenses, treating the company's finances like the promoters' personal piggy banks.

The Securities and Exchange Board of India (SEBI) has taken strict action against Gensol Engineering Ltd (GEL) by removing promoter brothers Anmol Singh Jaggi and Puneet Singh Jaggi from their positions as directors and other key roles within the company. In an interim order, the market regulator has also instructed GEL to put its planned 1:10 stock split on hold.

Dhoni Involved In Gensol 

After Gensol Engineering’s stock market crash on Wednesday, April 16, it was revealed that the family office of Indian cricketer MS Dhoni and Deepika Padukone participated in the Rs 420 crores raised by Gensol Engineering which saw the highest ever Series B valuation.