Gensol Electric Vehicles Private Limited (Gensol EV), the electric vehicle manufacturing subsidiary of Gensol Engineering that was developing two-seater electric cars, has laid off its remaining 100-odd employees and will officially shut down operations by April 30, according to sources. This comes just weeks after the company had terminated approximately 50 employees, as reported by FE earlier this month.
The announcement was made during a company call by CEO Pratik Rajendrakumar Gupta on Wednesday, who informed the remaining staff about the closure.
Genso, however, did not respond to a request for comments at the time of going to the press.
The closure comes in the wake of a damning Securities and Exchange Board of India (SEBI) interim order issued on April 16, which detailed alleged “systemic fraud and fund diversion” by the Jaggi brothers. SEBI’s investigation found that Gensol obtained Rs 663.89 crore in term loans from Indian Renewable Energy Development Agency (Ireda) and Power Finance Corporation (PFC) for procuring 6,400 electric vehicles, but delivered only 4,704 EVs worth Rs 567.73 crore. According to the SEBI order, the remaining Rs 262.13 crore disappeared through what was described as “layered transactions” benefiting the Jaggi brothers personally. The investigation was triggered by a complaint in June 2024 regarding share price manipulation and fund diversion.
The SEBI order had noted an intricate web of subsidiaries and related entities under the Gensol Group umbrella, many of which were involved in fund transfers the regulator deemed suspicious.
The latest development marks the final chapter for one of them — Gensol EV, the vehicle manufacturer that had ambitious plans to roll out its two-seater electric car EZIO and cargo vehicle EZIBOT, which it claimed got 30,000 pre-orders, later found to be dubious orders by SEBI. An NSE representative’s visit to Gensol EV’s plant in Chakan, Pune, on April 9, found “no manufacturing activity at the plant with only 2-3 labourers present.” The electricity bills examined during the visit showed maximum monthly consumption of just Rs 1.57 lakh in December 2024, leading regulators to conclude there was no significant manufacturing taking place at the leased property.
When investigators examined the so-called “pre-orders,” they found these were merely Memorandum of Understandings (MOUs) with nine entities for 29,000 cars. The regulator noted these MOUs were simply “expressions of willingness with no reference to the price of the vehicle or delivery schedules,” concluding the company was making misleading disclosures to investors. Internal sources who were working at the plant told FE that the company had only produced 10 EVs, mainly for testing purposes.
Besides Anmol Singh Jaggi, Pratik Rajendrakumar Gupta and Pranay Brijratan Mundra are also listed as directors at Gensol EV Private Limited.
Besides Gensol EV, SEBI noted Gensol EV Lease Private Limited (described as a subsidiary with 88.21% Gensol ownership), Gensol Consultant Private Limited, Gensol Ventures Private Limited, Matrix Gas and Renewable Limited, and Wellray Solar Industries Private Limited, among others, as part of the web used to round-trip money.