‘...Our Job Is To Find & Punish Them,’ Says SEBI Chief Tuhin Kanta Pandey On Gensol Fraud

Gensol Engineering and its sister concern, BluSmart, are under scrutiny as the market regulator, SEBI, alleged that the promoters, brothers Anmol and Puneet Singh Jaggi, used company funds for personal reasons.

Recent update on Gensol Engineering fraud

According to a recent report by India Today, commenting on the Gensol fraud, the new SEBI Chairperson Tuhin Kanta Pandey said, “There will be companies like Gensol in the system. SEBI’s job is to find and punish them.” 

Pandey’s statement came as BluSmart, the ride-hailing startup co-founded by the Jaggi brothers, suspended operations on its app on Thursday. 

The company issued an alert: “We’ve decided to temporarily close bookings on the BluSmart app… We will initiate a refund within the next 90 days if services do not resume before then.”

Incidentally, as BluSmart users started lamenting on social media, Kislay Verma, the founder of Shoffr, a Bengaluru-based premium car service provider, has quickly seized the opportunity, responding to frustrated users complaining about the sudden unavailability of the BluSmart service.

Also read: Vir Das Pays ₹50,000 Per Seat On Air India With Broken Tables; Pre-Booked Wheelchair For Wife Doesn’t Arrive (startuppedia.in)

Jaggi brothers found diverting company loans

From buying a luxury apartment in DLF Camellias in Gurgaon to a lavish Rs 26 lakh golf set, the market regulator disclosed that the promoters broke financial discipline by diverting company funds, calling it a “complete breakdown” of governance.

Gensol Engineering shares tumbled 5% on Thursday, hitting the lower circuit limit for the second straight day after SEBI took action against the company and its promoters.

The Securities and Exchange Board of India (SEBI) released an interim order on April 15, removing Gensol Engineering Limited (GEL) and BluSmart promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding any directorship post in the company and even barred the two brothers from accessing the market until further notice.

Gensol, in a regulatory filing on Wednesday, said, "They are no longer participating in the management of the company, as per SEBI's instructions, effective immediately."

Also read: 'I Am The Victim,' Says Ashneer Grover As SEBI Finds Out Investments In Anmol Jaggi’s Now Tainted Blusmart (startuppedia.in)