ED Investigates Gensol Engineering for Fund Misuse and Scams

The Enforcement Directorate (ED) is starting an investigation into Gensol Engineering Ltd because of concerns about how the company’s money might have been misused. The ED has also frozen some shares owned by someone linked to a different case involving the Mahadev betting app scam.

Reports say that the two brothers who run Gensol, Anmol Singh Jaggi and Puneet Singh Jaggi, have been banned from the stock market by the Securities and Exchange Board of India (SEBI) for breaking rules and allegedly using company loans for personal expenses. The ED is looking into how much money might have been lost by investors due to these actions. They are also checking if any foreign money rules were broken in this case.

Recently, the ED froze several shares of Gensol because they might be linked to foreign investors involved in the Mahadev betting scam. The ED had already seized five lakh shares of Gensol earlier in their investigation of the betting app.

Gensol Engineering announced that the ED currently holds about 5,20,063 shares, which is approximately 1.35% of the company’s total shares. These shares belong to a group believed to be connected to a man named Hari Shankar Tibrewal, who is accused of being involved in illegal money transfers. The ED discovered that Tibrewal reportedly worked with the Mahadev app promoters and disguised illegal money as investments in Indian companies.

The investigation found that a lot of money was being moved out of India through the Mahadev app and was then funneled back into Indian stock markets under false names. The ED believes Tibrewal and other company promoters manipulated stock prices and withdrew money when it suited them.

The Jaggi brothers also work on another project called BluSmart Mobility, which offers electric car services. Gensol Engineering has been accused of treating the company like it was their own personal bank. They allegedly used company funds to buy a luxury apartment, fancy golf equipment, and paid off personal credit cards. SEBI’s report noted that the Gensol promoters displayed poor governance, misusing loans from IREDA and PFC, which may lead to losses for investors.

In summary, the ED is investigating multiple issues, including potential misuse of funds and the diversion of money meant for shareholders. Gensol, which is listed on stock exchanges, provides services related to solar energy and leasing electric vehicles.