Business News: Gensol Engineering Under SEBI Probe Over Misuse of Rs 262 Crore EV Loan

Business News: Electric vehicles represent the future of sustainable transportation and technological growth in India. However, this goal has been slowed down by significant claims against Gensol Engineering. Between 2021 and 2024, the company obtained a term loan of Rs 958 crore from government entities IRIDA and PFC, saying that the funds will be utilized to purchase 6,400 electric vehicles for leasing to the rental platform BlueSmart. Contrary to this allegation, Gensol announced to the stock market that just 4,704 vehicles had been purchased for Rs 468 crore, much less than the projected Rs 830 crore, raising questions about the unexplained Rs 262 crore.

SEBI Removes Jaggi Brothers From Board

Further inquiry indicated that funds intended for car acquisition were transferred to companies associated with Gensol’s promoters, Anmol and Puneet Singh Jaggi. Notably, Go-Oto, a supply firm, moved substantial money to another company, Cabridge, which reportedly used some of the cash to buy a Rs 43 crore flat in DLF’s luxury property, The Camellias. This apartment was purchased under the name of a firm in which the Jaggi brothers are partners. Following these findings, SEBI prohibited both people from board and managerial positions in any listed firm and halted trading in Gensol shares. Despite the gravity of the charges, Gensol’s share price remains close to its prior peak, with almost 90% of shares deactivated and more than one lakh retail investors suffering severe losses.