Sebi Probe: Gensol Engineering's Misleading Disclosures Exposed

The Securities and Exchange Board of India (Sebi) uncovered questionable activities and misleading disclosures by Gensol Engineering. A probe revealed no manufacturing at its EV plant, financial misappropriations, and false pre-order claims. These findings prompted Sebi to initiate stringent measures against the company and its promoters, the Jaggi brothers.

In an explosive investigation, the Securities and Exchange Board of India (Sebi) has brought to light significant discrepancies and misleading disclosures by Gensol Engineering, a company promoted by Anmol Singh Jaggi and Puneet Singh Jaggi. The interim order, issued in response to a 2024 complaint, reveals troubling findings.

At Gensol's electric vehicle plant in Pune, only two to three laborers were present, with no actual manufacturing activity. Despite claims of pre-orders for 30,000 EVs, evidence suggested otherwise, with agreements lacking critical details on price and delivery schedules.

A Sebi probe into Gensol's financial practices further revealed gross fund misappropriation and fraudulent activities involving significant sums. Responding to these alarming findings, Sebi has barred the company and its promoter brothers from market access, signaling potential long-term ramifications.

(With inputs from agencies.)