EV Plant or Empty Plot? Sebi Finds Just 3 Workers and Zero Action at Gensol’s Pune Factory

Gensol Engineering Scam: Gensol Engineering is facing serious trouble after a surprise inspection by the market regulator Sebi. On April 9, an official from the National Stock Exchange (NSE) visited Gensol’s electric vehicle (EV) plant in Chakan, Pune. The official found only 2-3 labourers at the site and no sign of any manufacturing work, according to PTI report.

The plant is on leased land. Electricity bills for the past year were very low. The highest bill was just Rs 1.57 lakh in December 2024. This suggests that no major work was happening at the plant.

Big Announcements, Little Evidence

Gensol had made big claims earlier. In January 2025, it told the stock exchange that it had received pre-orders for 30,000 EVs. These were shown at the Bharat Mobility Global Expo.

However, Sebi found that these were only agreements to talk. They were MoUs (Memorandums of Understanding) with no fixed price or delivery dates. These were not real sales. Sebi said the company’s announcement may have misled investors.

Also Read: Gensol Engineering Fund Diversion: How BluSmart Founders Jaggi Brothers Blew Rs 40 Crore On DLF Camellias To Golf & Spa

Promises Fall Apart

On January 16, Gensol said it had a partnership with Refex Green Mobility. As part of this deal, Refex would take over a loan of Rs 315 crore and receive nearly 3,000 EVs. However, by the end of March, the deal was cancelled.

In another case, Gensol said it would sell its U.S. company, Scorpius Trackers Inc., for Rs 350 crore. But this U.S. company had only been created in July 2024. When asked, Gensol could not explain how it calculated that high price. Sebi said these announcements raised more questions than answers.

Where Did the Money Go?

Between 2022 and 2024, Gensol got loans of Rs 977.75 crore from IREDA and PFC. Out of this, Rs 663.89 crore was for buying 6,400 EVs. But the company only bought 4,704 vehicles, worth Rs 567.73 crore. This means about Rs 262 crore is unaccounted for.

Sebi found that some of the money was used by Gensol’s promoters, Anmol and Puneet Singh Jaggi, for personal use. This included buying a luxury flat and sending money to their relatives and private businesses they controlled.

Sebi’s Response

Sebi has banned Gensol and the Jaggi brothers from the stock market. The brothers cannot hold any top positions in the company. Sebi also told the company to stop its planned stock split. After this order, both brothers stepped down as directors of the company.