The Grey Side of a Green Company: The Fall of Gensol

by Kajal Goyal | Apr 17, 2025 | News | 0 comments

A well-known, promising player in India’s energy sector, Gensol Engineering’s story has taken a dramatic turn. The Securities and Exchange Board of India (SEBI) has issued an interim order against the company’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, for serious financial irregularities.

They are held responsible for making false statements and for misusing public money that was supposed to be used in clean energy projects.

A solar consulting and EPC services provider, Gensol started with a strong foundation and quickly expanded into electric vehicle leasing.

Their growth numbers were also eye-catching, rising from ₹61 crore in 2017 to over ₹1,100 crore in revenue by 2024. Many retail investors bought their stock, and its shareholder base increased from just 155 in 2019 to 110,000 by early 2025.

But cracks began to show earlier this year when rating agencies CARE and ICRA downgraded Gensol’s debt to “D,” raising questions about delayed repayments. After that, a deeper SEBI investigation revealed a series of troubling findings.

SEBI discovered that they had obtained loans a total of ₹977.75 crore from public sector lenders Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) to purchase 6,400 electric vehicles meant to be leased out.

However, according to SEBI’s calculations, they purchased only 4,704 EVs and left ₹262 crore unaccounted.

This is particularly concerning because both IREDA and PFC are specialized lenders supporting India’s renewable energy transition. SEBI alleges, part of the borrowed money was diverted, including luxury real estate purchases.

The investigation also highlighted how Gensol submitted false ‘Conduct Letters’ to the rating agencies, issued by IREDA and PFC, to show regular debt servicing. When SEBI cross-checked, both lenders denied issuing any such letters.

Meanwhile, its public claims also fell under scrutiny. In January 2025, the company announced that it had secured 30,000 pre-orders for its newly launched electric vehicles at the Bharat Mobility Global Expo. But when SEBI asked for supporting documents, it turned out that there are no confirmed prices or delivery timelines.

A ground inspection of Gensol’s EV manufacturing plant in Pune’s Chakan area raised concern when NSE officials found barely two or three laborers at the site and negligible electricity consumption.

There were more contradictions when they announced a ₹315 crore loan transfer and strategic tie-up with Refex in January, which quietly withdrew two months later. Another disclosure about selling its US-based Scorpius Trackers unit at ₹350 crore also collapsed under scrutiny.

SEBI’s interim order bars the Jaggi brothers from holding any directorial roles and restricts Gensol from raising further capital until the forensic audit is completed. But for the thousands of small investors and clean energy advocates who once believed in the Gensol story, the damage is already done.

When funds meant to be used in transition to renewable energy are misused, it’s a loss not just for investors but also overall process and stakeholders.

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