Earlier than the Securities and Alternate Board of India (SEBI) barred Gensol Engineering founders, Anmol and Puneet Jaggi, from holding key roles in listed firms, it unearthed a sequence of discrepancies, a few of which had been related to the disclosures made by the corporate. In an interim order, SEBI said that it discovered discrepancies in Gensol’s disclosures associated to pre-orders for 30,000 newly-launched EVs in addition to a producing plant in Pune.
SEBI started investigation into the corporate and the founders after it obtained a criticism in June 2024, referring to share value manipulation and diversion of funds from the corporate.
Gensol had made a disclosure on January 28, 2025 to the exchanges concerning the pre-orders for 30,000 items of its new-launched electrical automobiles unveiled on the Bharat Mobility World Expo 2025. As soon as the related paperwork had been requested for, it turned out that what was declared as pre-orders of 30,000 had been truly Memorandum of Understandings (MOUs) that the corporate had entered with 9 entities for 29,000 vehicles.
The MoUs had been within the “nature of an expression of willingness”, with no particulars of value or supply schedule. Prima facie, it appeared that the claims had been then deceptive.
On this regard, a consultant of NSE visited the plant on April 9, who found the jarring discrepancy. The plant was positioned in Pune’s Chakan space. Upon reaching the plant the official found that there was no manufacturing exercise on the plant with solely two-three labourers current there.
The NSE official then referred to as for particulars of electrical energy invoice and located that the utmost quantity billed by Mahavitaran (or Maharashtra State Electrical energy Distribution Firm Restricted) over the last 12 months was Rs 1,57,037 for the month of December 2024. “Therefore, it may be inferred that there was no manufacturing exercise on the plant web site which is on a leased property,” SEBI said.
Gensol had additionally knowledgeable the exchanges on January 16, 2025, that it introduced a strategic tie-up with Refex for the switch of two,997 electrical four-wheelers. Refex would assume Gensol’s present mortgage facility amounting to Rs 315 crore. The takeover was withdrawn two months later.
In a February 25 disclosure, Gensol knowledgeable the exchanges that it had signed a non-binding time period sheet for Rs 350 crore for a strategic transaction involving the sale of its US subsidiary Scorpius Trackers, which was included on July 22, 2024. “When probed by SEBI relating to the premise of such valuation of Rs 350 crore, Gensol has didn’t submit any clarification/rationale,” it stated.
The discrepancies elevate questions on whether or not traders, auditors, or analysts seen any inconsistencies — and in the event that they did, what actions adopted.
As an example, credit standing businesses (CRAs) CARE Ranking Restricted (CARE) and ICRA Restricted (ICRA), on March 03, 2025, and March 04, 2025, respectively, downgraded the scores assigned for fund-based and non-fund based mostly credit score amenities availed by Gensol to ‘D’ over delays in servicing debt obligations. On March 5, Gensol issued a launch, signed by Anol Singh Jaggi denied falsifying any debt serving claims.
Upon investigation the promoters had been discovered by SEBI to have submitted faux paperwork to Indian Renewable Vitality Growth Company (IREDA) and Energy Finance Company (PFC) to cover mortgage defaults.
The CRAs said that once they sought time period mortgage agreements, Gensol offered statements of all lenders aside from IREDA and PFC. In these instances, Gensol shared ‘Conduct Letter’ purportedly issued by IREDA and PFC, stating that Gensol was common in debt servicing. As soon as SEBI sought affirmation from IREDA and PFC on the Conduct Letters and NOCs, each the lenders categorically denied having issued such letters.
IREDA and PFC had given Rs 977.75 crore time period loans to Gensol, out of which Rs 663.89 crore was for buying 6,400 EVs, which had been subsequently leased to BluSmart. In a response on February 14, 2025, Gensol acknowledged that it procured 4,704 EVs as towards 6,400. The determine was corroborated by Go-Auto Pvt Ltd that equipped the EVs. It acknowledged promoting 4,704 EVs to Gensol for Rs 567.73 crore, which is lower than what IREDA and PFC had given for EVs.
Gensol was to supply an extra fairness (margin) contribution of 20 per cent, bringing the full anticipated deployment of Rs 829.86 crore for the acquisition of 6,400 EVs. Based mostly on this, the SEBI said that Rs 262.13 crore (Rs 829.86 crore – Rs 567.73 crore) remained unaccounted for.
