Sebi finds no manufacturing at Gensol's Pune EV plant, only 2-3 labourers
New Delhi, Apr 20 (PTI): Markets regulator Sebi has said it found "no manufacturing activity" at Gensol Engineering's electric vehicle (EV) plant in Pune with only 2-3 labourers present when a National Stock Exchange (NSE) official visited the site.
These revelations were part of markets regulator Sebi's interim order issued on April 15 following a complaint received in June 2024 alleging manipulation of Gensol's share price and misappropriation of funds.
In its order, the Securities and Exchange Board of India (Sebi) found discrepancies as well as misleading disclosures to investors by Gensol Engineering, a company promoted by brothers Anmol Singh Jaggi and Puneet Singh Jaggi.
One of the disclosures came from an investigation conducted by the NSE, which revealed a lack of manufacturing activity at Gensol's EV plant -- Gensol Electric Vehicle Private Ltd -- at Chakan in Pune.
During a site visit to the facility on April 9, an NSE official found only 2-3 labourers present.
"It was found that there was no manufacturing activity at the plant with only 2-3 labourers present there. The NSE official called for details of electricity bills of the unit and it was observed that the maximum amount billed by Mahavitaran during the last 12 months was Rs 1,57,037.01 for December 2024.
"Hence, it can be inferred that there has been no manufacturing activity at the plant site which is on a leased property," Sebi revealed in its interim order passed on April 15.
The visit followed an announcement by Gensol to the stock exchanges on January 28, 2025, claiming it had received pre-orders for 30,000 units of its newly launched EVs showcased at the Bharat Mobility Global Expo 2025.
However, upon reviewing the documents provided by the company, Sebi found that the orders were Memorandum of Understandings (MoUs) entered with nine entities for 29,000 cars.
The MoUs were in the nature of an expression of willingness with no reference to the price of the vehicle or delivery schedules.
Therefore, it prima facie appeared that the company was making misleading disclosures to investors, Sebi stated.
In another disclosure dated January 16, 2025, Gensol informed the exchanges regarding a strategic tie-up with Refex Green Mobility Ltd "for the transfer of 2,997 electric four-wheelers" to Refex.
As a part of the tie-up, Refex was to assume Gensol's existing loan of Rs 315 crore. However, in a disclosure dated March 28, the proposed takeover by Refex was withdrawn.
In yet another disclosure dated February 25, 2025, Gensol informed the exchanges that it had signed a non-binding term sheet for Rs 350 crore for a strategic transaction involving the sale of Gensol's US subsidiary -- Scorpius Trackers Inc.
It was noted that the US subsidiary was incorporated on July 22, 2024.
When probed by Sebi regarding the basis of such valuation of Rs 350 crore, Gensol failed to submit any explanation or rationale.
These were uncovered in a Sebi probe, which prima facie, revealed "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".
Gensol secured Rs 977.75 crore in loans from IREDA and PFC between FY22 and FY24. Of the loan, Rs 663.89 crore was meant for purchasing 6,400 EVs. However, Gensol admitted to acquiring only 4,704 EVs, worth Rs 567.73 crore, as confirmed by supplier Go-Auto.
Given that Gensol was also required to provide 20 per cent equity contribution, the total outlay should have been Rs 829.86 crore, leaving an unaccounted-for amount of Rs 262.13 crore.
The Sebi probe found that funds meant for EV purchases were often routed back to Gensol or entities linked to Jaggi brothers.
Some of the funds were used for personal expenses of the promoters, such as the purchase of a luxury apartment, transfers to close relatives, and investments benefiting private entities owned by the promoters.
In response to these governance lapses, Sebi took several stringent measures, including prohibiting Gensol and its promoters -- Jaggi brothers-from accessing the securities market until further notice.
Also, it barred the Jaggi brothers from holding any directorship or key management position in Gensol.
Additionally, Sebi directed Gensol Engineering to put its planned stock split into the ratio of 1:10 on hold.
Following the order, the brothers stepped down as the company's directors.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
People must do politics; elected representatives must work, says Actor Prakash Raj
Kalaburagi: Actor and activist Prakash Raj has said that in a democracy, politics must be done by the people, while elected representatives are meant to work and serve after winning elections.
Speaking at the launch of Vartha Bharati's Kalyana Karnataka edition in Kalaburagi on Saturday, Prakash Raj said that once representatives are elected, their only responsibility is service. “This is our tax, our country. Service is the only job of people’s representatives. They come to seek votes every five years; the people do not,” he said.
Releasing the newspaper’s special issue at the event, he asserted that the distinction between people and politicians must never be reversed. “This is our country. Citizens must continuously engage in politics, and politicians must continuously work. Never change this order. Politics belongs to the people,” he said.
ALSO READ: Kalaburagi: ‘Vartha Bharati’ Kalyana Karnataka edition launched
Quoting writer P. Lankesh, Prakash Raj said newspapers, media, artists, and citizens must act as a permanent opposition. “They must be the voice of the people without seeking the patronage of the ruling party. Only then can they work fearlessly,” he said. He stressed the need to clearly tell today’s society who must engage in politics.
Referring to regional imbalance, he said Karnataka has become Bengaluru-centric and confined largely to southern Karnataka. With Vartha Bharati entering the Kalyana Karnataka region, he said the newspaper must contribute to the region’s development by consistently reporting its issues with a strong voice.
Prakash Raj also spoke about the role of independent media, saying that anyone can be swept away in a flood, including dead fish, but to swim against the current requires life. “Independent media have that life. Ravish Kumar, The Wire, and Vartha Bharati have the courage to swim against the flood,” he said.
He warned that fear strengthens authoritarianism. “If we are not afraid, they will be afraid,” he said, alleging that institutions such as the police, Election Commission, courts, and media are being pressured, silenced, and manipulated for political benefit. Expressing concern over the denial of bail to Umar Khalid, he said there is a visible lack of conscience in institutions meant to deliver justice to the people.
Recalling the early years after Independence, Prakash Raj said there was once fear of the police but also faith in the judiciary. “There was confidence that injustice would be addressed in court. Today, that faith no longer exists,” he said. He alleged that Prime Minister Narendra Modi and the Bharatiya Janata Party are responsible for the present situation.
Using a metaphor, he said India is like a pond disturbed by a demon within it. “A lotus blooms on the surface, that is the BJP. We are fighting the lotus, but the real fight should be against the RSS, the root power beneath,” he said.
Drawing parallels with past global authoritarian regimes, he said leaders like Hitler and Mussolini headed political parties and could be defeated electorally. “The RSS is not a political party. Defeating the BJP alone is not enough. The roots must be uprooted,” he said, adding that despite changes in appearance, the ideological growth remains unchanged.
Prakash Raj also raised concerns over Hindi imposition, delimitation, and what he described as political oppression of southern states such as Kerala, Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh in the name of elections. He said people must recognise who is responsible for this oppression and understand the role of newspapers like Vartha Bharati in identifying and exposing it.
The event also marked the formal launch of Vartha Bharati's Kalyana Karnataka edition in Kalaburagi.
