Jennisol Engineering, which is an important partnership in the Clean Tech revolution in India, is now under regular scrutiny for financial irregularities and mistakes.
The Securities and Exchange Board of India (SEBI) has banned its promoters – Anmol Singh Jaggi and Ponit Singh Jaggi – from the Securities Market. The proceedings followed the allegations that the pair diverted the funds for electric vehicle (EV) projects, used them to purchase luxury and offered fake documents to meet the debt default.
After the Sebi order, genesol stock declined by 5 %, which has increased already in the previous one year.
The rise and fall of jeansol engineering
Established by the Jagi Brothers, Janisol started as a solar engineering firm and expanded the EV place. It was listed on the BSESME platform in 2019 and went to the central board by 2023. It also supported Blomemart, which was supported by the Commonwealth Electric Cab Service of Anmol Singh Jaggi, which through the lease through the supply of EVs.
While the company expressed his promise in its early days, matters went down quickly. The market value of the genusol has dropped from Rs 4,300 crore to Rs 506 crore in just one year. Its stock increased by about 85 85 %, causing trouble for thousands of retail investors.
Charges
The problem began with a loan of Rs 978 crore from two government -backed institutions – Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC). The purpose of this money was to fund the purchase of 6,400 EVs to lease Blomemart.
However, the CB found that Gansol had only 4,704 vehicles. This lost Rs 262 crore – which CB believes were diverted for personal use.
The Jegie Brothers allegedly used funds to buy a high -end apartment in Camelies, a luxury residential complex in Gurgaon. Other costs include alleged international travel, golf equipment, luxury items, credit card bills and family members.
How the funds were misused
The Sebi investigation shows how funds were wrongly directed through a series of transactions.
- From Rs.
- With a separate loan, Rs 40 crore was transferred to Valerry Solar Industries, which is connected to a company promoters.
- The funds were also transferred to other affiliated businesses and individuals, of which Rs 29.5 crore was transferred to Genol, and Rs 5.6 crore in matrix gas and renewable sources.
- The money was replaced between related firms like Janisol EV Lease, Gosular Ventures, and Bilsart Mobility to hide the real trail of the bending money.
Fake documents and loan defaults
Another serious allegation is that Gansol presented fake “conduct letters” to IRIDA and PFC, and claimed that his loan repayment was regular. When the CB reached the lenders, they both confirmed that they had not issued any such letter.
Subsequently, the Credit rating agencies ICRA and the care rating reduced the genus in the “D” rating in March, suggesting a default risk and poor payment capacity.
Conclusion
After the interim order of SEBI:
- The Jaggi Brothers are banned from accessing the securities market or playing a key role in the companies listed.
- Gansol’s planned stock distribution has been suspended.
- The forensic audit has been ordered to dig deep into the company’s financial books.
- Investors’ confidence has achieved massive success, and the company’s reputation is in serious doubt.
