**Title:** SEBI Uncovers Irregularities at Gensol Engineering’s EV Plant
**Meta Description:** SEBI reveals inconsistencies in Gensol Engineering’s operations, including a non-functional EV plant in Pune and misleading investor disclosures.
**URL Slug:** sebi-gensol-engineering-irregularities
**Headline:** SEBI Exposes Operational Irregularities at Gensol Engineering’s Electric Vehicle Plant
The Securities and Exchange Board of India (SEBI) has disclosed significant inconsistencies in the operations of Gensol Engineering, particularly concerning its electric vehicle (EV) manufacturing facility in Pune, Maharashtra. An investigation by the National Stock Exchange (NSE) revealed that the plant was not engaged in any manufacturing activities and had only two to three laborers present at the site.
During the investigation, an NSE official visited the Pune EV plant on April 9, 2025, and confirmed the lack of manufacturing activity. SEBI’s interim order, released on April 15, 2025, stated, “There was no manufacturing activity at the plant with only 2-3 laborers present there.” The order further noted that the highest billing amount from Mahavitaran over the past year was merely ₹1,57,037.01 for December 2024, indicating no substantial operations at the leased facility.
The NSE’s inquiry was prompted by Gensol Engineering’s announcement of receiving pre-orders for 30,000 electric vehicles at the Bharat Mobility Global Expo 2025. However, upon reviewing the documentation, it was found that the company had only signed a Memorandum of Understanding (MOU) with nine entities for 29,000 vehicles, which lacked details on pricing and delivery schedules. SEBI’s order suggested that this raised concerns about potentially misleading disclosures to investors.
This investigation is part of a broader inquiry initiated following a complaint lodged in June 2024 against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The market regulator revealed that Gensol had taken loans amounting to ₹9.78 billion (approximately $114 million) from IREDA and PFC, highlighting several governance failures, fund misappropriation, and submission of falsified documents. Allegations included share price manipulation and the misuse of company funds.
SEBI’s whole-time member, Ashwani Bhatia, remarked, “The promoters were running a listed public company as if it were a proprietary firm,” emphasizing that company funds were diverted to related parties for unrelated expenses, treating them as personal assets.
In light of these findings, SEBI has halted Gensol Engineering’s planned 1:10 stock split, leading to the resignation of directors Anmol Singh Jaggi and Puneet Singh Jaggi, along with independent directors, including Harsh Singh and Kuljit Singh Popli.
**FAQ Section:**
**What were the main findings of SEBI regarding Gensol Engineering?**
SEBI found that Gensol Engineering’s Pune EV plant was not operational, with only a few laborers present, and raised concerns about misleading investor disclosures and financial mismanagement.
