Anmol Singh Jaggi and Puneet Singh Jaggi, the directors and promoters of Gensol Engineering Ltd, resigned on Tuesday after SEBI (Securities and Exchange Board of India) banned them from using the securities market. This action came after an investigation revealed serious financial wrongdoing. The Jaggi brothers were found to have misused Rs 977.75 crore in loans meant for buying electric vehicles (EVs). According to SEBI’s interim order, issued after a complaint in June 2024, they used the company’s money for personal luxury items—like an expensive apartment in Gurgaon’s DLF Camellias and a golf set worth Rs 26 lakh.
Arun Menon, the Independent Director of Gensol Engineering Limited, in his resignation letter to the board of directors, said that he had raised concerns about the company’s debt position as early as July–August 2024. He said he had tried to reach out to Jaggi and even offered help to restructure the debt and reduce interest costs, but did not get any proper response. Menon added that despite trying to meet the company’s CFO through Parmar, the meetings never happened. He had noticed that Gensol’s balance sheet was being stretched to fund other businesses, and questioned whether the company could continue servicing such high debt.
Menon mentioned that he had planned to resign last year but was asked to stay on until the IPO of Matrix, a group company, was completed. Now, due to restrictions from his current job at a private equity-backed firm, he can no longer hold an independent director role.
While thanking the board and the management for their support, Menon said he hoped the company would learn from its past mistakes and recover from the current situation. Further adding on the same thread, Menon said, “I hereby confirm that there is no other material reason other than stated aforesaid.” He further confirmed that he doesn’t hold any “Directorship position in any other Listed Company”.
Gensol Shares Hit
Shares of Gensol Engineering fell by 5% on Thursday, hitting their lowest limit for the day. The stock dropped to Rs 117.50 on the BSE and Rs 116.54 on the NSE — both being record lows, reported PTI. This is the second day in a row the stock hit its lower circuit limit. Gensol shares have now fallen nearly 90% from their 52-week high of Rs 1,125.75. SEBI also told Gensol to pause its recently announced stock split.
This action followed a complaint in June 2024, where SEBI was alerted about share price manipulation and the misuse of company funds.
Sebi, in a 29-page interim order, on Tuesday said that the findings had shown “mis-utilisation and diversion of funds of the company (GEL) in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds”. The regulator said that the company tried to mislead Sebi, its lenders and investors, and also the credit rating agencies by “submitting forged conduct letters purportedly issued by its lenders”.
Impact on BluSmart cab service
BluSmart, an electric cab company that Anmol Jaggi co-founded, has reportedly shut its services in cities like Delhi, Bengaluru, and Mumbai, a report by Economic Times said. This sudden move came after SEBI took action against the company’s top officials in the loan fraud case. The ET report suggests that BluSmart may now partner with Uber and shift its vehicles there.
(This is breaking. Further details are awaited.)
