Camellias flat, ₹26 lakh golf set: 5 red flags SEBI cited in order against BluSmart co-founder

SEBI has barred founders of Gensol Engineering from holding key positions in company, citing alleged defaults on loans used to fund EV purchases for BluSmart.

Anmol Singh Jaggi and Puneet Singh Jaggi, the sibling duo who are the promoters of Gensol Engineering Ltd, have been accused of diverting crores of the company's funds while treating the listed company like a proprietary firm.

SEBI Bhavan at BKC Bandra in Mumbai. (PTI)

India’s markets regulator Securities and Exchange Board of India (SEBI) on Tuesday barred the founders of Gensol Engineering from holding key managerial positions in the company, citing alleged defaults on loans used to fund electric vehicle purchases for ride-hailing startup BluSmart.

5 revelations in the Gensol case

1) Company allegedly falsified debt track record documents

Credit rating agency ICRA downgraded Gensol's credit rating after it was found that the company allegedly presented it with falsified debt track record documents, raising "concerns on its corporate governance practices, including its liquidity position,” as per the order on SEBI website.

However, Gensol issued an investor release signed by CEO Anmol Singh Jaggi, categorically denying “any involvement in falsification claims.”

2) Company funds used to purchase a Gurugram luxury apartment

Capbridge Ventures LLP, a related entity was used to transfer ₹42.94 crore in funds to purchase a luxury apartment in Gurugram’s upscale ‘The Camellias’ project.

This was part of the ₹71.39 crore disbursed by the Indian Renewable Energy Development Agency (IREDA) to Gensol on 30 September 2022.

3) Golf set was purchased with ₹26 lakh of company funds

The SEBI order highlighted a ₹26 lakh payment to American sports equipment manufacturer TaylorMade for a golf set, along with various other personal expenditures.

4) Anmol Singh Jaggi diverted ₹50 lakh to invest in an Ashneer Grover startup

SEBI's order stated that Jaggi invested ₹50 lakh in Third Unicorn Pvt. Ltd, which is a tech start-up belonging to Ashneer Grover. He held 2,000 shares in the company as of 31 March, 2024.

5) Stock manipulation complaint prompted probe

SEBI's order came about after it received a complaint in June 2024, relating to manipulation of share price and diversion of funds from GEL and thereafter, started examining the matter.