The Securities and Exchange Board of India (SEBI) has upheld its ban on Gensol Engineering and its former key executives, Anmol Singh Jaggi and Puneet Singh Jaggi, over alleged fund diversion and corporate governance lapses. The Jaggi brothers, co-founders of the electric vehicle ride-hailing firm BluSmart Mobility, are barred from accessing the securities markets or holding any directorial or senior managerial positions in Gensol.

This decision comes amid ongoing insolvency proceedings at Gensol, now under the supervision of a court-appointed resolution professional. SEBI’s confirmatory order reinforces its April 2025 interim directive, highlighting that initial findings of financial misconduct remain unchallenged.

According to SEBI, the Jaggi brothers are accused of siphoning off company loan funds for personal purposes. “Prima facie findings regarding diversion/mis-utilisation of funds of Gensol have not been successfully rebutted,” the order stated, while also noting that a forensic auditor has been appointed to thoroughly examine Gensol’s books and those of its related entities.

SEBI’s Whole Time Member, Kamlesh C Varshney, added that the full extent of wrongdoing will be confirmed once the forensic audit is complete, but in the meantime, there is no basis to revoke the previously imposed restrictions.

The ban remains in force unless overturned by a competent tribunal or court involved in the company’s insolvency case. The regulator’s firm stance highlights its focus on transparency and accountability within publicly listed firms and its ongoing efforts to protect investor confidence.