SEBI confirms ban on Gensol, Jaggi brothers in fund diversion case

Markets regulator SEBI on Wednesday upheld its interim order restraining Gensol Engineering and its former directors Anmol Singh Jaggi and Puneet Singh Jaggi from the securities markets on concerns over fund diversion and corporate governance failures.

Additionally, the regulator said Jaggi brothers, also co-founders of EV ride-hailing firm BluSmart Mobility, would continue to be debarred from holding the position of a director or key managerial personnel in Gensol.

The final order comes as the company undergoes insolvency proceedings under the supervision of a court-appointed professional.

The brothers have been accused by SEBI of siphoning off loan funds from their publicly-listed company Gensol for personal use, raising concerns over corporate governance and financial misconduct.

In a detailed confirmatory order, SEBI stated that the prima facie findings of misappropriation of funds and falsification of conduct letters to credit rating agencies (CRAs) -- initially highlighted in its April 2025 interim order -- remain unrebutted by the company's promoters.

"... prima facie findings regarding diversion / mis-utilization of funds of Gensol have not been successfully rebutted by Noticees. I also note that a detailed investigation in this matter is being carried out. Further, a forensic auditor has already been appointed to examine the books of accounts of Gensol and its related parties.

"The concrete findings of investigation and the forensic auditor are yet to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual position and provide greater clarity on the matters under scrutiny," SEBI Whole Time Member Kamlesh C Varshney said in his order.

Given these developments, SEBI said it finds no reason to lift or modify the restrictions imposed earlier and accordingly confirmed the directions of its interim order.

However, the regulator clarified that the directions concerning Gensol will remain subject to any further orders from the competent tribunal or court overseeing the insolvency process.

According to the order, Puneet Singh Jaggi argued that he was not actively involved in the company's daily operations as he had moved to Bangalore to focus on another venture.

However, SEBI rejected this defence, noting that Jaggi holds a position of responsibility as a director and cannot disclaim involvement, especially when he appears to be a direct beneficiary of diverted funds through an entity named Wellray.

The regulator has directed its investigating authority to probe Jaggi's exact role further.

In its interim order, SEBI noted that funds meant for EV purchases were often routed back to Gensol or entities linked to Jaggi brothers. Some of the funds were used for personal expenses of the promoters, such as the purchase of a luxury apartment, transfers to close relatives, and investments benefiting private entities owned by the promoters.

Following the order, the brothers had stepped down as directors of the company.

The duo had launched two prominent ventures -- Gensol Engineering, which is engaged in providing solar consulting services, engineering, procurement and construction (EPC) services, and leasing of electric vehicles; and BluSmart Mobility, EV ride-hailing firm.