Fraud Alert: SEBI Acts Against Gensol Promoters for Misusing Company Funds

In a major development shaking up India’s stock market, the Securities and Exchange Board of India (SEBI) has barred Gensol Engineering Ltd (GEL) and its promoters — Anmol Singh Jaggi and Puneet Singh Jaggi — from participating in the securities market. The move comes after SEBI uncovered serious financial irregularities, including fund diversion and violations of corporate governance norms.

SEBI’s 29-page interim order reveals that the promoters treated the listed company like a personal entity. Instead of using corporate loans for legitimate business purposes, Anmol and Puneet allegedly diverted large sums of money to themselves and their family members. Anmol Singh Jaggi, for instance, routed ₹6.20 crore to his mother and ₹2.98 crore to his wife. He also spent ₹26 lakh on a golf set and ₹3 lakh on personal travel through MakeMyTrip.

What makes this case alarming is the casual misuse of company capital. The promoters allegedly rerouted even ring-fenced loans meant for electric vehicle purchases, turning Gensol’s finances into what SEBI described as a personal “piggy bank.”

SEBI’s whole-time member Ashwani Bhatia stated in the order:

“There is prima facie evidence of a blatant violation of corporate governance norms. The promoters ran the company with zero checks and balances, diverting funds at will. The result is massive erosion of investor trust.”

These shady financial practices could eventually force Gensol to write off the misused amounts, directly hitting the company’s books and causing potential losses to retail investors who believed in the stock. With such serious charges, questions are already emerging within the investor community: Will SEBI push for a full investigation and take stricter enforcement action to protect small investors?

In India’s growing stock market, where retail participation continues to soar, this case serves as a grim reminder. Stronger corporate governance, tighter auditing, and accountability are critical — not just for company boards, but also to safeguard the hard-earned money of retail traders and long-term investors.