Gensol promoter 'Rs 97 crore diverted funds' exposed: Luxury apartment in Gurugram's most-expensive property, crores to mother, wife

The Securities and Exchange Board of India (SEBI) has barred Gensol Engineering Ltd (GEL) from participating in the securities market, effective immediately due to allegations of financial misconduct, including fund diversion. According to SEBI's interim order, GEL's internal controls and corporate governance norms have completely broken down, with promoters allegedly running the listed company like a proprietary firm.

Gensol's promoters diverted funds for DLF's The Camellias 

SEBI alleged that Gensol Engineering's promoter, Anmol Singh Jaggi, diverted company loans to purchase a luxury apartment in The Camellias, Gurgaon. The funds were reportedly routed through a car dealer to an entity linked to Jaggi, which then paid for the high-end property. The company siphoned off funds meant for business purposes, took a Rs 71.41 crore loan from IREDA and added Rs 26 crore from its account, totaling Rs 97 crore, which was then routed through a car dealer to a firm controlled by promoters, ultimately paying Rs 42.94 crore for a luxury apartment in DLF's The Camellias project.

Gensol's diverted funds were allegedly used for a luxury apartment booked by Anmol Singh Jaggi's mother, Jasminder Kaur. She paid Rs 5 crore as a booking advance, sourced from Gensol, and when DLF returned the advance, the funds were diverted to Matrix Gas and Renewables, a related party, instead of being returned to Gensol. DLF confirmed that the payment was made on October 6, 2022.

SEBI bars Gensol's Jaggi brothers from capital markets

Gensol Engineering's promoter Anmol Singh Jaggi diverted funds also included investing Rs 50 lakh in Ashneer Grover's startup Third Unicorn, giving Rs 6.20 crore to his mother and Rs 2.98 crore to his wife, buying a golf set for Rs 26 lakh, besides booking a luxury apartment. Subsequently, SEBI has barred Gensol and its promoters from the capital markets, citing a breakdown in corporate governance.