The investigation revealed that funds intended for electric vehicle purchases were allegedly misappropriated for personal expenses, including luxury real estate and high-end consumer goods.

SEBI's inquiry, initiated after a complaint in June 2024, uncovered that ₹977.75 crore in loans were misused, with only a fraction of the planned electric vehicles actually purchased.

Gensol's stock has suffered dramatically, losing over 84% of its value in 2025, dropping from a peak of ₹1,376 in early February to an intraday low of ₹116.5 per share.

The Securities and Exchange Board of India (SEBI) has barred Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi from participating in securities markets due to a case involving fund diversion and governance lapses.

In response to the ongoing investigation, SEBI has put a hold on Gensol's pending 1:10 stock split and will appoint a forensic auditor to review the company's accounts, with a report expected in six months.

SEBI's findings indicated that the Jaggi brothers misappropriated ₹262 crore loaned for electric vehicle purchases, using it instead for personal gain.

In light of the crisis, BluSmart, an electric vehicle cab service linked to Gensol, has suspended operations, prompting advisories for alternative transport options at the Delhi airport.

Gensol has pledged to fully cooperate with the forensic audit and maintain transparency throughout the investigation process.

The scrutiny intensified following multiple complaints and credit rating downgrades from CARE Ratings and Icra, linked to delays in debt servicing by BluSmart Mobility, a related party.

Amid the ongoing scandal, Gensol's independent director Arun Menon resigned, citing a lack of clarity regarding the company's financial position and governance issues.

On April 17, 2025, Gensol's shares fell by 5%, marking the 16th consecutive day of decline, as the company faced increased regulatory scrutiny.

Despite the turmoil, Gensol reported a 32.52% increase in consolidated net profit for Q3 FY25, although its stock performance has sharply contrasted with this financial growth.