Meteoric rise and fall of Gensol
Gensol Engineering is engaged within the enterprise of offering engineering, procurement and building (EPC) providers within the renewable power sector, primarily specializing in solar energy initiatives.Gensol additionally supplied electrical automobiles to BluSmart by way of a leasing mannequin. In 2019, constructing upon their expertise in renewable power, the Jaggi brothers, together with co-founder Punit Okay Goyal, had launched BluSmart Mobility. BluSmart emerged as India’s first all-electric ride-hailing service, aiming to offer sustainable and environment friendly transportation options in city areas.
Gensol has grown impressively over the previous few years as per the data accessible on Screener.in. On a standalone foundation, the gross sales of the corporate have grown from Rs. 61 Crore in FY 2017 to Rs. 1,152 Crore in FY 2024. The trailing 12-month knowledge reveals that its gross sales went as much as Rs. 1,297 Crore. Throughout the identical interval, working revenue went up from Rs. 2 Crore to Rs. 209 Crore and internet revenue from Rs. 2 Crore to Rs. 80 Crore.
Gensol was initially listed on the BSE SME Platform in 2019 and subsequently, it received listed on the principle board of BSE and NSE in 2023.
Throughout the previous yr, the share value of the corporate touched a excessive of Rs. 1,126 per share with a market capitalization of round Rs. 4,300 crore at that value. On April 16, 2025, the share of Gensol was buying and selling at Rs. 122 per share.
How Jaggi brothers cast Ireda and PFC letters
Sebi obtained a grievance in June 2024, referring to manipulation of share value and diversion of funds from Gensol and thereafter, began inspecting the matter.
Sebi stated that prima facie findings had proven “misutilisation and diversion of funds of the corporate in a fraudulent method by its promoter administrators…who’re additionally the direct beneficiaries of the diverted funds”. The report additionally famous that the corporate had tried to mislead Sebi, the credit standing companies, the lenders and the buyers “by submitting cast conduct letters purportedly issued by its lenders”.
Credit score Ranking Businesses, CARE Ranking and ICRA, in March downgraded the scores assigned by them for fund-based and non-fund based mostly credit score amenities availed by the Firm, to “D” as delays in servicing debt obligations.
“The scores for the financial institution amenities of Gensol Engineering Limited (GEL) have been downgraded to [ICRA]D following suggestions obtained by ICRA from the corporate’s lenders in regards to the ongoing delays in debt servicing. GEL, in its newest public disclosures in addition to in its latest communications with ICRA, had highlighted sizeable accessible liquidity to assist its operations throughout its ongoing progress part.” ICRA, in its assertion additionally disclosed that “sure paperwork shared by GEL with ICRA, on its debt servicing monitor file, have been apparently falsified, which raises issues on its company governance practices, together with its liquidity place.”
“The CRAs [credit rating agencies] additional submitted that once they sought time period mortgage statements, Gensol supplied the statements of all lenders besides these of Indian Renewable Vitality Growth Company Ltd. (IREDA) and Energy Finance Company (PFC). In respect of those two lenders (PFC and IREDA), Gensol shared Conduct Letters purportedly issued by IREDA and PFC, which acknowledged that Gensol was common in its debt servicing,” Sebi order stated. “CARE additionally submitted that Gensol requested withdrawal of the scores assigned to it and, in assist of this request, submitted a No Objection Certificates (NOC) purportedly issued by its (Gensol) lenders.”
“Nonetheless, upon in search of affirmation from IREDA and PFC concerning the issuance of the Conduct Letters and NOCs, each the lenders categorically denied having issued such letters,” the Sebi order stated.
Mortgage cash splurged on DLF Camellias flat, golf set, Dubai foreign money
Sebi discovered that the promoters channelised mortgage quantities to associated events and used the identical for private bills. “The corporate’s funds have been routed to associated events and used for unconnected bills, as if the corporate’s funds have been promoters’ piggybank. The diversions would imply they must be written off from the corporate’s books, finally leading to losses to the buyers,” Sebi stated.
In keeping with the Sebi order, Gensol took a mortgage of Rs 71.41 crore from IREDA and added one other Rs 26 crore from its personal account, making a complete of about Rs 97 crore. A couple of days later, these funds have been despatched to Go-Auto, a automotive supplier that supplied EVs to the corporate. On the identical day, Go-Auto transferred Rs 50 crore to Capbridge Ventures, a agency run by Gensol’s personal promoters.
Sebi discovered that the funds availed by Gensol as loans for procuring EVs have been, by way of layered transactions, partly utilised for purchasing a high-end residence in The Camellias, DLF Gurgaon, within the identify of a agency the place the MD of Gensol and his brother are designated companions. On this sequence of transactions, Rs 5 crore was initially paid as reserving advance by Jasminder Kaur, mom of Anmol Singh Jaggi. This was additionally sourced from Gensol. As soon as DLF returned the advance to Jasminder Kaur, because the identical flat was purchased within the identify of one other firm of the promoters, the funds didn’t return to the corporate however have been as an alternative credited to a different associated get together of Gensol (Matrix Gasoline and Renewables). DLF, in a communication to Sebi, confirmed that the fee was made on October 6, 2022, as a part of the consideration for an residence initially booked by Jasminder Kaur.
The Jaggi brothers used the mortgage, which was given to Gensol by Ireda and PFC, for a variety of different private bills too corresponding to on a Rs 26 lakh TaylorMade golf set; for purchasing about Rs 66 lakh value of United Arab Emirates Dirhams; fee to inside decorator Mayo Design; Rs 50 lakh to Third Unicorn, an Ashneer Grover firm wherein Anmol Singh Jaggi is a shareholder; about Rs 17 lakh to Titan firm, maybe for purchasing watches or jewelry; Rs 3 lakh to MakeMyTrip; and money transfers to spouses and mom of Jaggi brothers.
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