Mumbai/New Delhi, April 16
In a shocking revelation, Gensol Engineering Limited (GEL) promoters Anmol Singh Jaggi and Puneet Singh Jaggi have been found to be diverting funds meant for electric vehicle (EV) procurement to buy a luxury apartment in Gurugram's upscale residential project -- The Camellias by DLF.
The findings were part of an interim order issued by the Securities and Exchange Board of India (SEBI) on April 15, which has led to a major crackdown against Gensol Engineering Limited (GEL) and its promoters.
The SEBI has barred both Jaggi brothers from holding any directorship in the company and restricted them from accessing the securities market.
According to the regulator, loans taken to buy EVs for the ride-hailing service BluSmart were routed through multiple entities and ultimately used for personal gains.
"Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners," the market regulator said in its interim order.
"It was separately noted that Rs 5 crore, which was initially paid as booking advance by Jasminder Kaur, mother of Anmol Singh Jaggi, was also sourced from Gensol. Further, it was noted that once DLF returned the advance to Kaur, the funds did not go back to the Company but were instead credited to another related party of Gensol," the SEBI added.