Sebi Bars Gensol’s Jaggi Brothers Over Misuse of Company Funds

SEBI has banned Gensol Engineering promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding any director or top management roles at the company due to fund misuse and other violations.

In its interim order, SEBI also barred the Jaggi brothers—who co-founded EV ride-hailing company BluSmart—and Gensol from accessing the securities market.

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“The prima facie findings have shown mis-utilization and diversion of funds of the company in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds,” the SEBI order said.

“The promoters were running a listed public company as if it were a propriety firm. The company’s funds were routed to related parties and used for unconnected expenses, as if the company’s funds were promoters’ piggybank,” the order read.

SEBI found that Gensol’s promoters and their relatives benefited from the company’s money through complex, layered transactions.

The regulator has also paused Gensol’s planned 1:10 stock split and will appoint a forensic auditor to review the financial records of Gensol and its related parties, including its subsidiaries and BluSmart.

The issue started when BluSmart defaulted on its non-convertible debentures. While credit rating agencies asked for more details, Gensol claimed its debt payments were on track and that BluSmart’s default didn’t affect it.

This triggered SEBI’s investigation, which uncovered several violations—marking the start of the current controversy. But first, let’s look at how Gensol is connected to BluSmart.

Gensol was started by the Jaggi brothers in 2007 as an EPC (engineering, procurement, and construction) company. Later, seeing a chance to shake up the ride-hailing market with electric vehicles, they launched an EV ride-hailing business as part of Gensol.

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