New Delhi: The recent SEBI investigation into Gensol Engineering has sent shockwaves through the Indian electric vehicle and ride-hailing sectors. The investigation centres on allegations of significant fund diversion and breaches of corporate governance by the company’s founders, Anmol and Puneet Singh Jaggi. These allegations have directly impacted BluSmart, a ride-hailing service that leases its electric vehicle fleet from Gensol. The disruption to BluSmart’s operations, evidenced by users’ inability to book cabs, underlines the interconnectedness of these businesses.
The SEBI investigation uncovered a pattern of alleged misuse of company funds for personal enrichment. This includes a substantial sum – Rs 43 crore – allegedly spent on a luxury property in Gurugram’s DLF Camellias. Further allegations involve the transfer of millions of rupees to the personal accounts of the Jaggis and their family members. The investigation also revealed a Rs 50 lakh investment in Ashneer Grover’s company, the rationale for which remains unclear. These transactions raise serious concerns about the ethical conduct of the company’s promoters.
The gravity of the situation is highlighted by SEBI’s immediate action. The regulatory body has barred Anmol and Puneet Singh Jaggi from the securities market and ordered a forensic audit of Gensols accounts. Furthermore, a planned stock split has been put on hold. The forensic audit will investigate the companys financial records in detail, potentially revealing further instances of financial impropriety.
The fallout extends beyond the Jaggis and the immediate consequences for Gensol and BluSmart. The lack of transparency and alleged corporate governance failures have severely damaged investor confidence. The uncertainty surrounding the future of both companies has also affected employees, drivers, and other stakeholders.
