Sebi’s order revealed a “complete breakdown” of corporate governance at Gensol, a renewable energy and electric vehicle (EV) firm.
The regulator accused the promoters of treating the listed company like a “personal piggy bank,” diverting funds for luxury purchases, including a high-end apartment in Gurgaon’s DLF Camellias and a Rs 26 lakh golf set.
The regulator’s probe, triggered by a June 2024 complaint, found that Gensol misused Rs 977.75 crore in loans from IREDA and PFC, meant for buying 6,400 EVs. Only 4,704 vehicles were purchased, leaving over Rs 207 crore unaccounted for.
Funds were allegedly funneled to promoter-linked entities like Go-Auto and Capbridge Ventures, with some used for personal expenses.
Gensol Engineering said it will fully cooperate with the forensic audit to be conducted at the behest of Sebi. The regulator will appoint a forensic auditor to thoroughly examine the books of accounts of the company and its related entities.”The company is committed to providing the auditor with complete access to records and information to ensure a transparent and comprehensive audit process,” Gensol said in a filing.Sebi order also flagged falsified documents submitted to credit rating agencies, misleading investors and lenders. The company’s shares plummeted 83% in 2025.
Gensol said it acknowledges that the Sebi proceedings and the media coverage may have adversely impacted investor sentiment, which in turn has been reflected in recent stock price volatility.
“We remain focused on our business objectives and are working diligently to maintain operational stability and performance,” it said.
The company also clarified that it has not entered into any agreement nor is it in discussions for any merger, acquisition, asset sale or any other significant transaction that has not been disclosed.
