The Securities and Trade Board of India (SEBI) has confirmed its ban on Gensol Engineering and its former executives, Anmol Singh Jaggi and Puneet Singh Jaggi, over allegations of fund diversion and company governance failures. The prohibition prevents the Jaggi brothers, who’re additionally cofounders of the electrical automobile ride-hailing agency BluSmart Mobility, from collaborating within the securities markets or holding directorial or key managerial roles at Gensol.
This determination comes at a time when Gensol is present process insolvency proceedings beneath a court-appointed skilled’s supervision. SEBI’s actions underscore its dedication to sustaining market integrity by addressing monetary misconduct decisively.
SEBI’s confirmatory order revealed that the preliminary findings of fund misappropriation and conduct falsification, highlighted in an interim order in April 2025, stay unrebutted. The Jaggi brothers stand accused of siphoning off mortgage funds from Gensol for private use, elevating vital issues about monetary misconduct and the corporate’s governance requirements. The order states, “… prima facie findings concerning diversion / mis-utilisation of funds of Gensol haven’t been efficiently rebutted by Noticees. I additionally notice {that a} detailed investigation into this matter is being carried out. Additional, a forensic auditor has already been appointed to look at the books of accounts of Gensol and its associated events.”
Because the detailed investigation continues, SEBI has affirmed that the findings shall be corroborated by way of a forensic audit to supply readability on the monetary misconduct allegations. SEBI Entire Time Member Kamlesh C Varshney famous, “The concrete findings of the investigation and the forensic auditor are but to emerge. As has been submitted by Noticees themselves, the findings of the forensic audit will serve to corroborate the factual place and supply better readability on the issues beneath scrutiny.” SEBI finds no grounds to raise the restrictions imposed earlier, emphasizing the significance of transparency and accountability in company governance.
The restrictions on Gensol and the Jaggi brothers stay topic to any additional orders from the competent tribunal or court docket overseeing Gensol’s insolvency course of. This step displays SEBI’s dedication to making sure accountability and transparency in monetary operations and governance inside publicly listed firms.
The continuing investigation and forensic audit are anticipated to additional illuminate the extent of economic misconduct at Gensol and its associates. Such measures are important for safeguarding investor pursuits and sustaining belief within the monetary system.
