MCA Books Gensol, BluSmart for Flouting Governance Norms
The MCA orders a probe into the embezzlement of funds by Gensol Engineering and its affiliate company, BluSmart Mobility. SEBI probe revealed how funds were siphoned for extravagant expenses of the company’s MD and his brother.
May 08, 2025. By News Bureau
The investigation, which has been ordered under Section 210 of the Companies Act, will focus specifically on the fund diversion allegations highlighted in the Securities and Exchange Board of India’s (SEBI) interim report on Gensol in mid-April. The market regulator learnt about Gensol’s malpractices in 2024 after a complaint regarding share price manipulation and diversion of funds.
SEBI sought information from credit rating agencies, ICRA and CARE, as some of the documents provided by the company to support its debt servicing history appeared to be forged. Throughout the investigation, the ratings agencies informed SEBI that Gensol provided statements from all lenders except IREDA and PFC when the latter demanded term loan statements.
Gensol issued conduct letters purportedly given by PFC and IREDA to these two lenders, where Gensol claimed it was regular with its debt payment. When the rating agencies raised questions with IREDA and PFC, seeking clarification, they were told they had never issued the said letters.
SEBI made an interim order in April 2025, barring Anmol Singh Jaggi and Puneet Singh Jaggi, the Gensol promoters, from occupying any KMPs in the company and from entering into securities market transactions, being involved in alleged fraud activities. SEBI informed Gensol provided fake conduct letters purportedly issued by its lenders to mislead credit rating agencies, lenders, and investors.
The SEBI probe uncovered gross embezzlement of funds as the money received by Gensol as funds through loans for the acquisition of electric vehicles was spent partly to buy a luxurious flat in The Camellias, DLF Gurgaon, in the name of a company where Gensol’s MD and his brother are partners. The money was extravagantly spent on shopping, travel, and on buying a golf set.
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