Gensol Engineering Ltd has been rocked by corporate governance concerns, as promoters Anmol Singh Jaggi and Puneet Singh Jaggi resigned from the company following a SEBI investigation into fund diversion and financial misconduct.
SEBI’s Interim Order and Leadership Exit
The Securities and Exchange Board of India (SEBI) issued an interim order on April 15, 2025, barring the Jaggi brothers from holding key managerial positions in Gensol Engineering. The order cited misuse of company funds, forged documents, and misleading financial disclosures.
In compliance with SEBI’s directive, Anmol Singh Jaggi (Managing Director) and Puneet Singh Jaggi (Whole-time Director) stepped down on May 12, 2025, relinquishing all executive roles and committee memberships.
Stock Market Impact: Gensol Shares Plummet
Following the leadership exit, Gensol’s stock crashed 90%, plummeting from ₹800 to ₹52, marking a 52-week low. The stock has been hitting lower circuits daily, reflecting investor concerns over financial irregularities.
SEBI’s Allegations: Fund Diversion and Fraudulent Practices
SEBI’s investigation uncovered misappropriation of ₹978 crore in loans, originally sanctioned for electric vehicle (EV) procurement. Instead, funds were allegedly redirected to luxury real estate, shell companies, and personal ventures.
Additionally, SEBI accused Gensol of submitting forged conduct letters to mislead credit rating agencies, lenders, and investors.
Forensic Audit and Regulatory Scrutiny
SEBI has mandated a forensic audit of Gensol’s financial records and related entities, with the Ministry of Corporate Affairs also launching an independent probe.
Investor Sentiment and Future Outlook
With SEBI’s final order expected within four weeks, investors remain cautious. Analysts warn that Gensol’s stock could face further volatility, pending regulatory decisions and forensic audit findings.
As corporate governance concerns escalate, Gensol Engineering’s future hinges on regulatory compliance and financial transparency.
