Regulator's Findings Spark Investor Worries

In a surprising revelation, the Securities and Exchange Board of India (Sebi) reported no manufacturing activity at Gensol Engineering's electric vehicle (EV) plant in Pune. This discovery was made during an inspection by an NSE official, casting shadows over the company's claims and raising questions about investor disclosures.

Details of the Inspection

The visit, prompted by allegations of share price manipulation and fund misappropriation, found the plant largely inactive, with only a handful of laborers present. Further scrutiny of electricity bills revealed minimal usage, suggesting the site was not operational as claimed.

Questionable Disclosures and Pre-Orders

Gensol had previously announced receiving pre-orders for 30,000 units of its new EVs showcased at the Bharat Mobility Global Expo 2025. However, Sebi's review uncovered that these were merely MoUs with nine entities for 29,000 cars, not firm orders.

Investor Implications

These findings highlight significant discrepancies in Gensol's disclosures, potentially misleading investors. The situation underscores the importance of regulatory oversight in protecting investor interests.