Gensol Engineering shares hit the 5per cent upper circuit for the third consecutive session on Thursday, following the resignations of Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi earlier this week. The resignations, effective from the close of business on May 12, were made in compliance with SEBI’s interim order.
Last month, SEBI barred the Jaggi brothers from accessing the securities market until further notice, alleging they siphoned off loan funds from Gensol for personal use. The allegations raised serious concerns around corporate governance and financial misconduct.
The brothers are best known for founding clean energy ventures Gensol Engineering and BluSmart Mobility.
IREDA files insolvency plea
In a fresh development on May 14, the Indian Renewable Energy Development Agency (IREDA) filed an insolvency petition against Gensol Engineering over a loan default of ₹510 crore. The plea was filed under Section 7 of the Insolvency and Bankruptcy Code, IREDA said in a regulatory filing.
Gensol had borrowed ₹977.75 crore from IREDA and Power Finance Corporation (PFC), of which ₹663.89 crore was earmarked for the purchase of electric vehicles for BluSmart, the EV ride-hailing platform co-founded by Anmol Singh Jaggi.
In April, both lenders filed complaints with the Economic Offences Wing, alleging that Gensol falsified documents related to loan repayments. The Enforcement Directorate subsequently raided the company’s premises, seizing documents and electronic devices, while SEBI ordered a forensic audit.
SEBI’s order alleged that the Jaggi brothers diverted company funds for personal luxury purchases and failed to meet loan obligations, including those linked to BluSmart’s EV fleet.
Of the ₹978 crore sanctioned to finance 6,400 electric vehicles, only 4,700—worth ₹567 crore—were delivered, leaving ₹262 crore unaccounted for.
According to SEBI, the excess funds were diverted into unrelated transactions, including real estate investments and payments to entities connected to the promoters.
Gensol’s stock has plunged over 93per cent in the past year and 55per cent in the last month alone.
