This Solar Stock became Nightmare for Retail Investors

Gensol, a renewable energy stock, has witnessed a sharp decline from ₹770 to ₹69.74 year-to-date. Stock has been hitting lower circuit from last 17 Trading sessions with no buyers. The drop comes amid serious allegations of misuse of term loans. As part of its investigation, the Securities and Exchange Board of India (SEBI) visited Gensol's electric vehicle (EV) manufacturing plant in Pune and reportedly found only 2–3 employees on site.

At the Bharat Mobility Expo 2025, Gensol Engineering Ltd. (GEL) had announced that it received 30,000 pre-orders for its electric vehicles. However, SEBI later revealed that these were merely Memorandums of Understanding (MoUs), not actual confirmed orders. The regulatory body alleged that the company misled investors by portraying these MoUs as firm orders.

Further, SEBI claimed that funds raised for the EV business were diverted for personal use by the company's co-founders and promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. These expenses allegedly included the purchase of a luxury apartment and other personal items.

The investigation uncovered an alleged misuse of approximately ₹262 crore from a ₹978 crore loan secured from Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The loan was intended to fund the acquisition of 6,400 EVs for leasing to ride-hailing service BluSmart. However, only 4,704 vehicles were actually procured. SEBI stated that a portion of the funds was used to purchase high-end real estate, including an ultra-luxurious apartment in DLF Camellias, as well as for personal expenditures such as golf equipment, luxury goods, and credit card payments.

As a result of these findings, SEBI has barred Anmol Singh Jaggi and Puneet Singh Jaggi from accessing the securities markets until further notice.