From green energy to red flags: How Gensol’s Rs 975 crore scandal jolted India’s clean-tech poster child

Gensol Engineering Ltd., once a rising star in India’s renewable energy and electric mobility sectors, is now under intense scrutiny following the allegations of financial misconduct and regulatory violations. 

The Ministry of Corporate Affairs (MCA) has reportedly initiated a suo motu inquiry into Gensol Electric, examining the company’s regulatory filings and financial records after the Securities and Exchange Board of India (SEBI) passed an interim order against its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi.​

Allegations of Financial Misconduct

Sebi’s investigation revealed that the Jaggi brothers allegedly diverted approximately Rs 975 crore in loans, obtained from institutions like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), for personal expenses instead of their intended purpose of EV procurement . The promoters are also accused of submitting fake documents to conceal loan defaults .

Approximately Rs 96.69 crore was allegedly diverted from Gensol Electric to promoter-linked private entities. Additionally, Rs 37.5 crore from a loan by Gensol’s subsidiary, Gensol EV Lease Pvt. Ltd., was traced to promoter Anmol Singh Jaggi. The funds were reportedly used for personal expenses, including purchasing a luxury apartment, golf sets, spa services, and settling personal credit card dues .​

Regulatory Actions Taken

In response to these findings, SEBI has barred Anmol and Puneet Jaggi from participating in the securities market and from holding any positions as directors or key managerial personnel in any listed company. Following SEBI’s order, both promoters have resigned from their positions at Gensol Engineering .

The MCA’s independent inquiry aims to investigate potential corporate governance lapses and financial irregularities within Gensol Electric. The ministry is examining the company’s regulatory filings and financial records to determine the extent of the alleged misconduct.

Company Background and Market Performance

Founded in 2012, Gensol Engineering Ltd. specialized in engineering, procurement, and construction (EPC) services in the solar power sector. 

The company expanded into electric mobility in 2019 with the launch of BluSmart and announced plans for EV manufacturing with a facility in Pune. 

However, SEBI’s interim order noted that officials visiting the Pune plant could not find any manufacturing activity, and the claimed pre-orders for EVs were merely expressions of interest without concrete details.​

Despite these issues, Gensol reported its highest-ever revenue of Rs 960 crore in FY24, marking a 141% year-on-year growth from Rs 398 crore in FY23 . The company’s market capitalization stood at Rs 2,887.61 crore, with a total debt of Rs 1,396.58 crore and a promoter ownership of 62.58%

The company reported a revenue of Rs 14.52 billion and a net income of Rs 1.03 billion.

However, the recent controversies have significantly impacted Gensol’s market performance. As of April 3, 2025, the company’s market capitalization stood at Rs 5.98 billion, marking a nearly 80% decline over the past year .

The unfolding scandal has raised serious concerns about corporate governance and financial integrity within Gensol Electric. As regulatory bodies continue their investigations, the company’s future remains uncertain, with potential implications for stakeholders and the broader renewable energy sector in India.

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