SEBI’s interim order exposes Gensol Engineering’s fraudulent activities involving misused public funds, unaccounted for transactions, and personal luxuries.
By Aniket Chakraborty
Apr 22, 2025
Image Credit | @GensolEng | X
Gensol raised Rs 262.13 crores for electric vehicle procurement but failed to account for the funds, diverting them for personal expenses and real estate.
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Funds raised for EVs were allegedly used to buy a luxury flat worth Rs 42.94 crores in DLF’s “The Camellias” project in Gurgaon.
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PFC and IREDA, key government institutions, failed to ensure funds were used for their intended purpose, allowing the money to be diverted to unrelated uses.
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Gensol submitted fraudulent Conduct Letters to PFC and IREDA, claiming timely payments, which were later proven to be fabricated.
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Both institutions failed to enforce accountability, continuing to disburse funds without proper oversight and ignoring defaults.
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Gensol faced significant delays and defaults in debt servicing, with overdue sums remaining unpaid beyond the required 30-day disclosure period.
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The lack of independent verification and proactive oversight by PFC and IREDA exposed a major flaw in safeguarding public funds.
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Gensol funneled loan proceeds through layered transactions to promoter-linked entities, using the money for personal, non-business purposes.
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SEBI’s probe continues as the misuse of public funds and lack of action from the responsible institutions spark outrage and calls for stronger regulatory enforcement.