Diversionary tactics: Fund misuse at Gensol raises red flags again

The Gensol saga is the latest in a list of corporate cases where promoters redirected funds at will and whim. It's yet another wakeup call

Earlier this month, the Securities and Exchange Board of India (Sebi) dropped a bombshell on Gensol Engineering. It barred promoters Anmol Singh Jaggi and Puneet Singh Jaggi from both the securities markets and directorial roles. The charge was that they had allegedly diverted a loan of over ₹262 crore meant for procuring 6,400 electric vehicles (EVs) to buy luxury real estate, including a ₹43 crore apartment in The Camellias, DLF’s uber-luxury project at Gurugram, and for personal expenses such as international travel and credit card bills.

 

Sebi’s interim order painted a damning picture: The Jaggi brothers had treated the listed