Sebi's Shocking Findings on Gensol Engineering

Markets regulator Sebi has uncovered alarming discrepancies at Gensol Engineering's electric vehicle (EV) facility in Pune. A site visit revealed no manufacturing activity, with only 2-3 laborers present, contradicting the company's grand announcements.

Misleading Disclosures and Non-Binding Agreements

Despite announcing pre-orders for 30,000 EVs, Sebi found these were merely non-binding MoUs with no concrete details on pricing or delivery, raising serious questions about Gensol's transparency with investors.

Fund Diversion and Personal Gains

Sebi's investigation revealed misuse of funds intended for EV purchases, including luxury apartment acquisitions and transfers to relatives, highlighting a blatant disregard for corporate governance.

Regulatory Actions and Consequences

In response, Sebi has imposed strict restrictions on Gensol and its promoters, barring them from the securities market and halting a planned stock split, marking a significant blow to the company's credibility.