Gensol Engineering Under Spotlight as SEBI Bars Promoters Over Fund Diversion Concerns

Gensol Engineering Ltd. (GEL) shares are in the midst of intense scrutiny following the Securities and Exchange Board of India (SEBI) issuing a blanket interim order preventing the company and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities markets. The move comes on charges of diversion of large funds, corporate governance lapses, and deceptive disclosures.

 

Major Developments:

 

SEBI Action: Both promoters are not allowed to hold any directorial or key managerial positions at Gensol and are prevented from dealing in securities till further notice. SEBI has also suspended the company's proposed 10:1 stock split on suspicion that it was planned to lure more retail investors amidst ongoing irregularities.

 

Nature of Allegations: SEBI investigation discovered how the promoters of GEL treated the public company as if it was personal, siphoning company funds into related parties and personal luxury expenditure, such as a luxury flat in Gurgaon and to family members. Of the loans of ₹978 crore raised for buying electric vehicles, more than ₹262 crore cannot be accounted for.

 

Corporate Governance Collapse: The probe found manipulated documents filed with SEBI, credit rating agencies, and lenders, and a trend of misrepresenting loan repayment and company financials.

 

Market Impact: Gensol shares have plummeted over 80% in 2025, recording a 52-week low, with the stock now subject to Enhanced Surveillance Measures by exchanges. Credit rating agencies have downgraded the facilities of the company on account of defaults and financial unsoundness.

 

Next Steps: SEBI has directed a forensic audit of the accounts of Gensol, and a report should be submitted within six months. The restrictions would continue till the probe is over and a final order is passed.

 

Source: Business Today, Economic Times, Moneycontrol