No manufacturing, 2-3 labourers: How NSE visit exposed inactivity at Gensol's Pune EV plant

The Securities and Exchange Board of India (Sebi) made several revelations regarding inconsistencies in the operations of Gensol Engineering. One such revelation included a probe by NSE highlighted a Gensol EV plant in Pune, Maharashtra that carried out no manufacturing activities and employed only two-three labourers.

What did NSE find out?

During the Gensol investigation, an NSE official visited the company's Pune EV plant and found only two or three labourers at work. The Sebi order mentioned there was no manufacturing activity going on at the plant.

“There was no manufacturing activity at the plant with only 2-3 labourers present there,” states Sebi's interim order released on April 15, 2025.

“It was observed that the maximum amount billed by Mahavitaran during last 12 months was Rs. 1,57,037.01 for the month of December 2024. Hence, it can be inferred that there has been no manufacturing activity at the plant site, which is on a leased property,” the order further added.

How did NSE lead to this revelation?

The NSE representative's visit is regarding Gensol Engineering's disclosure that it received pre-orders for 30,000 electric vehicles launched at the Bharat Mobility Global Expo 2025.

However, after verifying the documents, it was revealed that the company entered into a Memorandum of Understanding (MOU) with 9 entities for 29,000 electric vehicles. The MOUs did not mention the price and delivery schedule for these vehicles. “Therefore, it prima facie appeared that the Company was making misleading disclosures to investors,” the Sebi order said.

NSE visited the Gensol Electric Vehicle Private Limited plant in Pune on April 09, 2025.

Sebi order

This disclosure is one of several revelations made in Sebi's interim order regarding a complaint received in June 2024 against Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The market regulator revealed that Gensol took out loans worth ₹9.78 billion (around $114 million) from IREDA and PFC.

The order further highlighted several governance lapses, fund diversion, and falsified document submissions. The complaint alleged share price manipulation and misappropriation of company funds.

“The promoters were running a listed public company as if it were a proprietary firm,” Sebi whole-time member Ashwani Bhatia said. “Company funds were routed to related parties and used for unrelated expenses—as if the company’s funds were the promoters’ piggy bank," he added.

Following the interim order, Sebi halted the 1:10 ratio stock split of Gensol Engineering, the directors of the company Anmol Singh Jaggi and Puneet Singh Jaggi resigned.

Additionally, the independent directors of the company, including Harsh Singh, Kuljit Singh Popli and Arun Menon, stepped down. In February 2025, the company's debt was nearly ₹1,146 crore.