Gensol promoter Anmol Jaggi invested in Ashneer Grover's startup using diverted funds: Sebi interim order

BluSmart cofounder Anmol Singh Jaggi allegedly transferred funds worth Rs 25.76 crore from Gensol Engineering to family members and other related entities, including Ashneer Grover's startup Third Unicorn, apart from using some for personal expenses.

An order issued by market regulator Securities and Exchange Board of India (Sebi) on Tuesday detailed various examples of diverting funds that Gensol raised to procure electric vehicles (EVs). A list in the order shows Jaggi transferred Rs 6 crore to his mother, Rs 2 crore to his wife, and Rs 50 lakh to Grover's Third Unicorn.

In a strongly-worded interim order, Sebi said on Tuesday there is a complete breakdown of internal controls and corporate governance norms in Gensol as a listed company. "The promoters were running a listed public company as if it were a propriety firm," the order read.


The market watchdog has temporarily banned the promoters from acting as directors or key managerial personnel, and prohibited Gensol and other entities from trading in the securities market until further notice.

Gensol Engineering is engaged in the business of providing engineering, procurement and construction (EPC) services in the renewable energy sector, primarily focusing on solar power projects. It provided electric vehicles to BluSmart through a leasing model.

ET reported on April 15 that the cash-strapped startup is planning to exit its core ride-hailing business and pivot to operating as a fleet partner of rival Uber.