Wed Apr 16 04:30:00 UTC 2025: ## SEBI Halts Gensol Engineering Trading, Accuses Promoters of Fraudulent Fund Diversion
**Mumbai, India** – The Securities and Exchange Board of India (SEBI) has issued an interim order barring Gensol Engineering Ltd (GEL) and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from participating in the securities market. The order, effective immediately, follows allegations of significant financial misconduct and corporate governance failures.
SEBI’s investigation revealed that the promoters allegedly diverted substantial company funds for personal use, including the purchase of luxury real estate. A ₹42.94 crore loan, intended for electric vehicle purchases, was allegedly channeled through a promoter-controlled firm, Capbridge Ventures, to buy a luxury apartment. Further investigations uncovered misuse of company funds for investments in other ventures, such as Ashneer Grover’s Third Unicorn, and personal expenses including a golf set and personal travel. Additional funds were allegedly diverted to the promoter’s mother and wife.
The SEBI order, totaling 29 pages, details a pattern of misusing company funds as if they were personal piggy banks. SEBI member Ashwani Bhatia stated that the actions demonstrate a “culture of weak internal control” and a “blatant violation of corporate governance rules.” The regulator has also halted GEL’s recently announced stock split.
The interim order highlights the alleged fraudulent diversion of approximately ₹62 crore in company funds. These actions are expected to result in losses for GEL investors and necessitate write-offs from the company’s books. The investigation is ongoing, and further action is anticipated.
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