Jaggi brothers: How the Gensol founders fell

Story up to now:  Touted as a ‘one-stop store for all issues associated to solar energy’, Gensol Engineering Ltd noticed its shares plummet by 90% in April this yr from their 52-week excessive of ₹1125 in June 24, 2024. The autumn adopted after India’s regulatory physique, Securities and Alternate Board of India (SEBI), discovered alarming sample of fund diversion by the corporate’s promoters — Anmol Singh Jaggi and Puneet Singh Jaggi. 

In its interim order, SEBI revealed that the Jaggi brothers handled Gensol, which is listed within the Nationwide Inventory Alternate (NSE), as a proprietary agency and diverted company funds to purchase a high-end residence in The Camellias, DLF Gurgaon, splurge on a luxurious golf set, repay bank cards and switch cash to shut kinfolk. Moreover, it discovered that Gensol’s electrical automobile (EV) plant in Pune had “no manufacturing exercise” and solely two to 3 labourers have been current when a NSE official visted the positioning.

Nonetheless, Gensol is just not the one firm the brothers have endangered. Electrical cab service BluSmart — one other start-up based by the brothers and seen as a rival to Uber, suspended its providers after SEBI’s essential report. As its fleet of 8000 taxis are procured by Gensol after which leased to BluSmart, its providers have been affected as a consequence of SEBI’s probe into the Jaggis. The corporate has supplied a ‘refund throughout the subsequent 90 days if providers don’t resume’, reported Reuters.

Who’re the Jaggis?

Raised as ‘Military children’, the elder brother — Anmol Singh Jaggi, nursed entrepreneurial spirit since his early years. Whereas learning Utilized Petroleum Engineering at Dehradun’s College of Petroleum & Vitality Research between 2003 and 2007, Anmol first dipped into the renewable power sector in his last semester of B.Tech. An internship at Reliance Industries pushed him into carbon buying and selling, the place in he bought carbon credit from wind farms in India and offered them to European corporations. 

On July 2, 2007, he based Gensol Engineering in a 50 sq. ft area in Ahmedabad providing Engineering, Procurement, and Development (EPC) options for photo voltaic initiatives. The corporate helps its purchasers in designing, procuring supplies and set up in photo voltaic vegetation, i.e. start-to-finish of the mission. Touting its rooted beginnings, Anmol posted on LinkedIn, “16 years right this moment of being tremendous pumped in constructing enterprise, making mates, superior staff, sort traders,” displaying a photograph along with his mother and father and grandparents. His brother – Puneet, who accomplished his B.Tech in Chemical Engineering from the Indian Institute of Expertise (IIT) Roorkee in 2010, joined Gensol quickly after. 

In 2016, Puneet additionally based Prescinto Applied sciences — an Synthetic Intelligence (AI)-based asset efficiency administration supplier for renewable power. Based mostly in Bengaluru, the agency was a part of the Gensol Group and catered to prospects in fourteen nations. With AI options, the corporate targeted on analysing clear power plant knowledge to delivering elevated era. This firm was acquired by IT large IBM in October 2024. 

In the meantime, Anmol based Matrix Gasoline And Renewables Restricted in 2018 — a gasoline provider and distributor for power manufacturing, specializing in pure gasoline, biogas and inexperienced hydrogen. As a part of the Gensol group, Matrix is a part of the basket of renewable power options supplied together with lithium-ion cell manufacturing, battery power storage, EV leasing and manufacturing and photo voltaic EPC. Collectively, the brothers additionally based BluSmart in 2019.

Between 2019-2024, shares analysts have been very bullish on Gensol because it expanded its enterprise scope from photo voltaic to EV sector, based on Fortune India. Its share costs surged from ₹85 to ₹2,392, delivering returns of 2714% to its traders.

What went flawed with Gensol?

In keeping with Businessline, the corporate’s income was on the rise from 2022 until 2025, with its efficiency beating 2024. With orders value ₹4,000 crore and over 8,300 EVs leased by December 2024, Gensol’s prospects appeared vibrant. Nonetheless, by March 2025, the corporate’s credit standing stories downgraded it to D-rating (i.e. anticipated to default quickly). This despatched Gensol’s inventory crash by 20% on the identical day and it hit decrease on a regular basis. 

There have been a number of causes listed for Gensol monetary points are — three years of money outflows exceeding its inflows (adverse money flows), growing development of promoters pledging their shares as collateral for loans (promoter share pledge) from 81.7% in December 2024 to 85.5% in February 2025, dropping promoter holdings from 71.2% in March 2022 to 62.1% in 2025 and the resignation of the CFO on March 6 citing ‘private causes’. Gensol’s s liquidity place and investor confidence have been diminished previous to SEBI’s probe. 

In April this yr, SEBI initiated a probe following complaints of share worth manipulation and default in mortgage repayments, filed in June 2024. Gensol had availed ₹977.75 crore in time period loans from establishments like IREDA and PFC of which ₹663.89 crore was earmarked for buying 6400 EVs. Nonetheless, solely 4,704 autos value ₹567.73 crore have been procured, ₹262.13 crore unaccounted for, discovered SEBI. 

This triggered a droop in Gensol’s inventory from its file excessive of ₹2,392 in October 2023 to half its value (₹1126) in June 2024 and to ₹111.65 on April 21, 2025 — days after SEBI’s interim order.

What has SEBI discovered on Jaggis?

In response to SEBI’s findings, Gensol admitted that it had procured solely 4,704 of the 6400 EVs it had obtained funding for, leaving ₹262.13 crore unaccounted for. SEBI discovered that in lots of situations, funds transferred to Gensol’s provider Go-Auto for EV purchases have been routed again to it or entities linked to Anmol and Puneet both straight or not directly.

Some funds have been used for unsanctioned functions. These embrace financing a luxurious residence in DLF Camellias by routing funds through Anmol’s Capbridge Ventures, ₹6.20 crore allegedly diverted to Anmol’s mom Jasminder Kaur, ₹2.98 crore to his spouse Mugdha Kaur Jaggi and investing ₹50 lakh in Ashneer Grover’s startup Third Unicorn, ₹26 lakh on a golf set and ₹3 lakh spent via MakeMyTrip for journey. On Puneet, SEBI discovered that he diverted ₹1.13 crore to his partner Shalmali Kaur Jaggi, ₹87.52 lakh to his mom and repay his bank card payments. 

In its 29-page order, SEBI concluded, “These transactions would imply that the diversions would should be written off from the corporate’s books, finally leading to losses to the traders of the corporate.” 

It has barred the Jaggi brothers from holding any directorship or key administration place in Gensol or some other listed firm. Gensol’s promoters have been prohibited from accessing the securities market till additional discover, citing fund diversion and critical governance lapses. The corporate’s proposed inventory cut up within the ratio of 1:10 has additionally been placed on maintain. A forensic auditor is now additional investigating the matter.