The funds were reportedly sent through car dealers to entities related to Jaggi, which paid for high-end properties.
The Securities and Exchange Commission of India (SEBI) has banned Gensol Engineering Ltd (GEL) from participating in the securities market due to allegations of financial misconduct, including fund transfers, effective immediately. According to SEBI’s interim order, the gel’s internal control and corporate governance norms have completely collapsed, and the sponsors allegedly operated public companies like proprietary companies.
Gensol’s sponsor transfers funds for DLF’s The Camellias
SEBI claims that Anmol Singh Jaggi, the promoter of Gensol Engineering, transferred the company’s loan to purchase a luxury apartment in Camellias, Gurgaon. The funds were reportedly sent through car dealers to entities related to Jaggi, which paid for high-end properties. The company Siphon raised funds for commercial purposes, received a loan of Rs 7.141 crore from IREDA and added a loan of Rs 26 crore from its account, totaling Rs 9.7 crore, and then routed a car dealer to a company controlled by the promoter through a car dealer, eventually paying for a luxury apartment project of DLF FLF Ambalials The Camellias through a car dealer.
Gensol’s transfer funds are allegedly used for a luxury apartment booked by Anmol Singh Jaggi’s mother, Jasminder Kaur. She booked Gensol for Rs 5 crore and when DLF returned the advance payment, the funds were transferred to Matrix Gas and Renewables of an affiliate instead of returning Gensol. DLF confirmation payment was made on October 6, 2022.
Sebi Bars Gensol’s Jaggi brothers come from the capital market
Gensol Engineering promoter Anmol Singh Jaggi transfers funds also include investment of Rs 5 million in Ashneer Grover’s startup third unicorn, offering Rs 62 crore to his mother and Rs 298 crore to his wife to buy golf for Rs 26 lakh, in addition to booking a luxury apartment. SEBI then turned Gensol and its sponsors away on the grounds of subdivision of corporate governance.
