Anmol and Puneet Singh Jaggi, promoters of Gensol Engineering Ltd, are now facing severe legal repercussions and conditions following their detention under the Foreign Exchange Management Act (FEMA). The Enforcement Directorate rounded up Puneet Singh Jaggi in Delhi while also conducting raids across Delhi, Gurugram, and Ahmedabad. This probe was initiated off the back of a Securities and Exchange Board of India (Sebi) report that flagged several problems, including serious financial misconduct and the apparent misuse of company funds. Anmol Singh Jaggi is currently reported to be in Dubai, an alleged haven for fugitive Indian businessmen.
Allegations of Misuse and Missing Funds
Sebi’s preliminary findings allege that Gensol and the Jaggi brothers misappropriated funds. Gensol, as per Sebi, borrowed a total of about 1,000 crore (INR 977.75 crore) from public sector banks and institutions like the PFC and IREDA at cheap rates, using the money to procure not EVs but something else altogether. They say some of these funds might have made their way into the accounts of Gensol and Jaggi’s other companies and that this might be the reason for the discrepancies.
Investigators discovered that a significant amount of money was funneled into Gensol or moved to companies associated with the Jaggi family. They also learned that these funds were being used for personal and family expenses. In short, a big chunk of the money that was supposed to be going to Gensol was instead being sent to pay for stuff like the Jaggi family’s daughter-actresses’ performances at charity events and for renovations of some celebrity that Jaggi maintains.
Lavish Spending Raises Eyebrows
The investigation is revealing the depth of personal enrichment using company resources. About INR 42.94 crore went through Anmol Singh Jaggi’s Capbridge Ventures to pay for a luxury apartment in the upscale DLF Camellias. That wasn’t enough to satisfy this alleged scheme’s appetite. Around INR 50 lakh was allegedly funneled to Ashneer Grover’s startup, Third Unicorn.
The personal gratification and profit reflected in our findings is alarming. Anmol’s mother received over INR 6.2 crore and his wife nearly INR 3 crore in the transfers of bribery money. Puneet and Anmol lavished their families with a total of just over INR 5 crore. Spending at that level obviously meant inflating all sorts of costs, and the auditors found plenty of instances overvaluing everything from fancy golf clubs to travel in first class on MakeMyTrip.
Impact on Investors and Corporate Governance
The financial irregularities have had a direct impact on Gensol’s market performance. Since Sebi released its interim report, the stock has fallen more than 22 percent. The company’s promoters, according to regulators, have used Gensol as a personal financial tool and have always put their own interests ahead of those of shareholders.
Sebi is now pursuing a forensic audit, and the ED is ramping up enforcement actions. The case marks a major setback for corporate governance in India’s renewable energy sector and serves as a cautionary tale for both investor trust and regulatory oversight.
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