Gensol Engineering's Shares Plummet 90% Following SEBI Fraud Revelation
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Synopsis
The stock of Gensol Engineering Limited, the parent company of EV maker BluSmart, has plummeted nearly 90% following serious fraud allegations from SEBI, which has barred its promoters from leadership roles and exposed various financial irregularities.
Key Takeaways
- Gensol Engineering stocks fell by 90% after SEBI's fraud exposure.
- Promoters Anmol and Puneet Jaggi are banned from leadership roles.
- SEBI's investigation revealed significant fund misappropriation.
- BluSmart is rebranding as Uber Green amid the turmoil.
- Heavy financial misconduct linked to luxury expenditures.
New Delhi, April 17 (NationPress) The stock of Gensol Engineering Limited, the parent organization of BluSmart, experienced another decline of 5 percent on Thursday, culminating in a staggering drop of nearly 90 percent from its 52-week peak of Rs 1,124.90 after a significant fraud was uncovered by the capital markets regulator.
The sharp downturn follows an interim order issued by the Securities and Exchange Board of India (SEBI) that highlighted severe financial misconduct and prohibited the company's promoters from participating in any leadership positions.
On Thursday, Gensol shares were trading at Rs 116.54, firmly locked in the lower circuit on the National Stock Exchange (NSE).
Heavy selling pressure has persisted since SEBI accused Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, of large-scale fund misappropriation.
SEBI has barred the Jaggi brothers from engaging in the securities market or holding any significant managerial roles in publicly listed firms.
The investigation revealed that promoter Anmol Singh Jaggi had allegedly misappropriated company funds for personal use and transferred substantial amounts to family members.
Specifically, Jaggi is reported to have sent Rs 6.2 crore to his mother and Rs 2.98 crore to his wife.
Additionally, he spent hefty sums of company money on luxury purchases, including Rs 26 lakh on a golf set, Rs 17 lakh on shopping at Titan, and over Rs 10 lakh on spa treatments.
About Rs 3 lakh was allocated for personal travel through MakeMyTrip. Furthermore, a transaction of Rs 50 lakh was made to BharatPe’s Co-founder Ashneer Grover’s startup Third Unicorn.
Jaggi allegedly siphoned off Rs 25.76 crore from BluSmart, utilizing part of it for foreign currency, investments, credit card payments, and other extravagant expenses.
Amidst this chaos, BluSmart has reportedly ceased ride bookings and is planning to partner with Uber as a fleet provider.
According to media reports, the company has initiated the rebranding of its electric taxis as Uber Green in Bengaluru. This development follows the resignation of the Jaggi brothers from their leadership positions in light of the SEBI investigation.
A ground report by NDTV Profit indicates that the rebranding is already in progress, with some BluSmart taxis at the Bengaluru airport donning the Uber Green livery.
“A taxi driver at the location confirmed the transition and even shared a photo of a cab being repainted,” the report stated.
