In a shocking interim order, SEBI has taken action against Gensol Engineering Limited (GEL) and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The regulator has barred both from holding any board positions or accessing the securities market. Why? Because funds meant for electric vehicle purchases for BluSmart were allegedly rerouted to fund personal luxuries, including a swanky apartment in Gurugram’s The Camellias.

The fund trail that raised eyebrows

Between 2021 and 2024, Gensol secured over ₹978 crore in term loans from government-backed institutions IREDA and PFC. Out of this, ₹664 crore was earmarked specifically to buy 6,400 EVs for BluSmart’s fleet. But by early 2025, only 4,704 EVs had been procured, worth ₹568 crore.

That left a ₹262 crore-sized question mark.

SEBI’s forensic deep dive revealed that instead of being used to buy the remaining vehicles, large portions of the loan were funneled through layers of related parties, eventually leading to personal expenses by the promoters.

Lavish lifestyles funded by EV loans?

Some of the eye-popping spends revealed in the SEBI report:

• ₹42.94 crore went from Capbridge (a related entity) to DLF for a luxury apartment.
• ₹26 lakh for a premium TaylorMade golf set.
• ₹6.2 crore to their mother, ₹2.99 crore to the wife, and ₹1.86 crore for foreign currency.
• Smaller spends included ₹17 lakh to Titan Company and ₹3 lakh to Make My Trip.

All this, while investors and government lenders were under the impression these funds were helping drive India’s green mobility transition.

What SEBI said

SEBI did not hesitate, and stated:

“The promoters were running a listed public company as if it were a proprietary firm... routing funds to related parties and using them like a personal piggy bank.”

The regulator warned that such diversions, when written off, would result in major losses to Gensol’s investors. Following the release of the order, Gensol’s stock hit the lower circuit, crashing 5% to ₹122.68.

What’s next?

This is just an interim order, further investigations could follow. But SEBI’s crackdown already sends a strong message to the EV sector and capital markets alike: governance lapses and financial misdeeds will not go unchecked.

As India races towards cleaner mobility, investor trust and ethical corporate conduct will remain non-negotiables.