Gensol Engineering's Misappropriation Scandal Unveiled by SEBI

Gensol Engineering's promoters allegedly diverted corporate funds for personal use, purchasing luxury goods and real estate. SEBI's investigation highlighted governance failures, revealing Gensol's incomplete procurement of electric vehicles despite loans secured for the purpose. The misallocation of funds has led to regulatory action against the promoters.

SEBI has uncovered significant governance failures at Gensol Engineering, accusing the company's promoters of using corporate funds for personal expenses. The regulatory body revealed in a recent order that promoters Anmol Singh Jaggi and Puneet Singh Jaggi diverted funds to purchase luxury items and a high-end apartment.

The investigation by SEBI found that money meant for purchasing electric vehicles was used instead for unrelated personal expenditures. Gensol secured substantial loans for procuring EVs, but acquired fewer vehicles than financed, leaving large sums unaccounted for.

Blocking further market access for Gensol and its promoters, SEBI also halted the company's planned stock split. The crackdown serves as a warning about governance and financial integrity, underscoring the impact on investors due to the promoters' alleged misuse of funds.

(With inputs from agencies.)