GENSOL Fraud Exposed: Promoters Used EV Loans to Buy DLF Camellias Flats

SEBI has just uncovered a major financial scandal involving GENSOL Engineering Ltd., led by its promoters, the Jaggi brothers. What was once a rising star in India’s EV ecosystem is now under fire for alleged misuse of funds, specifically EV loans that were reportedly diverted to purchase ultra-luxury flats in DLF’s prestigious Camellias project in Gurugram.

The market regulator, SEBI, removed Gensol Engineering Limited (GEL) promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from holding any directorial positions in the company. Additionally, both brothers have been barred from accessing the securities market until further notice. This marks a serious blow to the credibility of a company once seen as a promising player in India’s green energy transition.

On the day SEBI’s interim order was released, Gensol Engineering’s share price plunged 5%, hitting the lower circuit at ₹122.68 on the NSE.

In its official statement, SEBI stated, "The promoters were running a listed public company as if it were a propriety firm. The company's funds were used for unconnected expenses, as if the company's funds were promoter's piggybank".

But what was the actual fraud? How did the promoters manage to reroute funds? Whose money was misused—retail investors, banks, or the public? And the biggest question is, did you invest in GENSOL? If yes, what should you do now?

GENSOL: From EVs to Luxury Flats

GENSOL Engineering Limited, founded in 2012, specialises in renewable energy, primarily focusing on solar power projects. The company offers EPC services globally and is also involved in EV manufacturing and leasing.

However, Gensol's reputation took a hit when it was revealed that the company had taken a loan of Rs 71.41 crore from the Indian Renewable Energy Development Agency (IREDA), adding Rs 26 crore from its own account, bringing the total to nearly Rs 97 crore. These funds were transferred to Go-Auto, ostensibly for the purchase of EVs.

Shockingly, Go-Auto transferred Rs 50 crore to Capbridge Ventures, a firm owned by the Jaggi brothers themselves. Capbridge Ventures then funnelled Rs 42.94 crore to DLF for the purchase of a luxury apartment in The Camellias.

DLF Camellias is a luxury housing project located in Sector 42, Gurgaon. It features 429 high-end residences, available in 4 BHK, 5 BHK, and 6 BHK layouts. According to the official website, prices for these upscale homes begin at Rs 70 crore.

Sebi confirmed this as a blatant case of fund diversion, where loans meant for EV leasing were rerouted to real estate deals through related entities. The apartment was bought in the name of a firm where both Anmol Singh Jaggi and Puneet Singh Jaggi are listed as partners.

The Full Story Behind the GENSOL Fraud

Between 2021 and 2024, Gensol Engineering Limited secured term loans totalling a massive ₹978 crore from two public sector lenders — the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). Of this, ₹664 crore was earmarked specifically for the procurement of 6,400 electric vehicles (EVs), which Gensol was to lease to ride-hailing startup BluSmart. An additional equity contribution of 20% from Gensol itself was expected, pushing the total deployment for the EV project to around ₹830 crore.

However, cracks began to appear in February 2025 when Gensol, in an official exchange filing, disclosed that it had procured only 4,704 EVs — far short of the 6,400 target. The company’s EV supplier, Go-Auto, backed this number, stating that the total transaction value for the 4,704 EVs stood at ₹568 crore. This raised immediate red flags: what happened to the remaining ₹262 crore?

SEBI’s investigation confirmed the worst. According to the market regulator, this ₹262 crore discrepancy had gone unaccounted for, even though more than a year had passed since the last tranche of financing was received. Their analysis revealed a troubling pattern: once the funds were transferred from Gensol to Go-Auto (which was presented as a supplier), large portions were either routed back to Gensol or funnelled into entities directly or indirectly controlled by its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi.

What’s more, SEBI found that these funds weren’t just circulating within the company ecosystem — some of them were used for personal luxury expenses by the promoters. One key transaction caught SEBI’s eye: after receiving a tranche from IREDA in 2022, Gensol transferred a chunk to Go-Auto, which in turn passed ₹50 crore to Capbridge Ventures — a related entity controlled by the Jaggi brothers. Capbridge then moved ₹42.94 crore to real estate major DLF.

When SEBI contacted DLF, they confirmed that the amount was used for the purchase of an ultra-luxury apartment in The Camellias, a prestigious residential project in Gurugram. The apartment was registered under a firm where both Anmol and Puneet Jaggi serve as designated partners.

SEBI summed it up bluntly in its interim order dated April 15:

“Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners.”

Banking Secrets of Anmol Singh

SEBI has exposed a significant misuse of company funds by Gensol Engineering promoter Anmol Singh Jaggi. A detailed analysis of his bank statements revealed that large amounts were siphoned off for personal luxury, family transfers, and unrelated expenses. Here's a structured breakdown of the major financial diversions:

Key Personal Transactions Uncovered:

₹26 lakh – Spent on purchasing a luxury golf set from TaylorMade.
₹6.2 crore – Transferred to Jasminder Kaur, Anmol Singh’s mother.
₹2.99 crore – Sent to Mugdha Kaur Jaggi, his wife.
₹1.86 crore – Used to buy foreign currency for personal purposes.
₹17.28 lakh – Payment to Titan Company, categorised as personal expenditure.
₹11.75 lakh – Transferred to DLF Homes, also flagged for personal use.
₹3 lakh – Spent on travel bookings through MakeMyTrip.

Puneet Singh Jaggi, Anmol’s brother, also showed similar fund diversion patterns in his bank records.

Impact on GENSOL Share Price

The SEBI revelations surrounding Anmol Singh Jaggi’s financial misconduct triggered an immediate and sharp reaction in the share price. Gensol Engineering's shares faced intense selling pressure as investors panicked over governance concerns.

Stock Performance Highlights:

Lower Circuit

On the day SEBI’s interim order was released, Gensol Engineering’s share price plunged 5%, hitting the lower circuit at ₹122.68 on the NSE.

Investor Sentiment Shaken

The exposure of such large-scale fund diversion and misuse of investor capital caused a severe dent in investor trust, leading to a quick sell-off.
Many retail investors expressed concern over the lack of transparency and weak internal controls.

Potential Long-Term Effects

If SEBI’s investigation leads to further penal action or fines, the share may see prolonged bearish pressure.
Institutional investors may reconsider exposure due to increased governance risks.

Market Watchers' Outlook

Analysts believe the stock could remain volatile until clarity emerges from SEBI's final findings.
Confidence may only return with a management overhaul and stronger compliance practices.

Source: MoneyControl , IndiaToday