Wed Apr 16 04:30:00 UTC 2025: ## Sebi Probes Misuse of Funds at Gensol Engineering, Links to Luxury Apartment Purchase

**Gurgaon, India –** The Securities and Exchange Board of India (Sebi) has launched an investigation into Gensol Engineering, revealing a serious breach of corporate governance involving the alleged misuse of company funds to purchase a luxury apartment in DLF Camellias, one of Gurgaon’s most exclusive residential projects.

The interim order issued by Sebi alleges that Anmol Singh Jaggi, a promoter of Gensol, diverted approximately ₹97 crore—a loan from IREDA supplemented by company funds—intended for electric vehicle purchases. This money was channeled through related entities, Go-Auto and Capbridge Ventures (run by the Jaggi brothers), ultimately resulting in a ₹42.94 crore payment to DLF for an apartment in The Camellias. An additional ₹5 crore initial booking payment, also sourced from Gensol funds, was made by Jaggi’s mother, Jasminder Kaur. When DLF later refunded this advance, the money was not returned to Gensol, but instead transferred to another related company, Matrix Gas and Renewables.

Sebi’s investigation concluded this represented a clear case of fund diversion, with the promoters using the company’s finances as a personal account. The regulator found evidence of further instances of fund misappropriation, including the use of fake documents and misreporting to credit agencies.

As a result, Sebi has barred Anmol Singh Jaggi, his brother Puneet Singh Jaggi, and Gensol Engineering from trading in the capital markets until further notice. Both brothers are also prohibited from holding any senior positions within Gensol. Sebi criticized the promoters for operating the listed company as a “proprietary firm,” highlighting a complete breakdown of internal financial controls and corporate governance.

Gensol’s proposed stock split has been halted by Sebi, citing concerns that it could attract more small investors while serious issues remain unresolved. A forensic audit of Gensol’s books, focusing on transactions with related entities, has been ordered. The company and its promoters are temporarily restricted from buying or selling shares, though they are permitted to close existing trading positions within a specified timeframe. The duration of these restrictions remains undetermined. The DLF Camellias apartment, priced at over ₹70 crore, has become a focal point in the ongoing investigation.

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