Gensol Electric Vehicles (Gensol EV), the electric vehicle manufacturing subsidiary of Gensol Engineering, is set to cease operations by April 30, 2025.
This decision is based on an investigation by the Securities and Exchange Board of India (SEBI). The probe involves allegations of financial misconduct within the parent company.
The closure marks a significant setback for Gensol Group, which had ambitious plans to revolutionize the EV market with innovative products.
Allegations and Investigation
The SEBI investigation uncovered systemic fraud and fund diversion by Gensol Engineering’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi.
The company obtained loans totaling ₹663 crore from public-sector financiers, including the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC).
These funds were intended for the procurement of 6,400 electric vehicles.
However, only 4,704 vehicles were delivered, valued at ₹567.73 crore, leaving ₹262 crore unaccounted for.
Further scrutiny uncovered that the diverted funds were routed through layered transactions.
These funds were used for personal expenses, such as luxury real estate purchases, golf equipment, and travel.
SEBI’s interim order, issued on April 16, 2025, barred the Jaggi brothers from holding managerial positions. It also prohibited them from accessing the securities market.
Impact on Gensol EV: Employee Layoffs and Operational Halt
The investigation’s aftermath has resulted in the shutdown of Gensol EV. The company had been focused on developing two-seater electric cars and cargo vehicles.
The company had claimed to have received pre-orders for 30,000 units, but SEBI found these to be non-binding Memorandums of Understanding (MoUs) with no concrete details on pricing or delivery timelines.
A site inspection at Gensol EV’s Pune plant revealed minimal manufacturing activity, further raising concerns about the company’s operations.
As part of the shutdown process, Gensol EV has laid off its remaining workforce of approximately 100 employees.
Earlier layoffs had affected around 50 staff members.
The closure has not only impacted employees but also cast uncertainty over the future of Gensol Group’s electric mobility ambitions.
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