BluSmart’s Parent Firm Crashes 90% As Sebi Exposes Mega Fraud

New Delhi: The stock of Gensol Engineering Limited, the parent company of EV maker BluSmart, crashed another 5 per cent on Thursday, taking the total fall to nearly 90 per cent from the 52-week high of Rs 1,124.90 after a massive fraud was exposed by the capital markets regulator.

The steep decline comes after the Securities and Exchange Board of India (SEBI) passed an interim order exposing serious financial irregularities and banning the company’s promoters from taking part in any leadership roles.

Gensol shares were trading at Rs 116.54, locked in the lower circuit on Thursday on the National Stock Exchange (NSE).The stock has been under heavy selling pressure ever since SEBI alleged large-scale fund diversion by Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi.

Meanwhile, its independent director Arun Menon has resigned with immediate effect. In his resignation letter addressed to Anmol Singh Jaggi, one of the promoters of the company.

The regulator has barred the Jaggi brothers from accessing the securities market or holding any key managerial positions in listed companies.The SEBI probe found that promoter Anmol Singh Jaggi had allegedly transferred company funds to family members and for personal use.

According to the order, Jaggi sent Rs 6.2 crore to his mother and Rs 2.98 crore to his wife.He also spent large amounts of company money on luxury items, including Rs 26 lakh on a golf set, Rs 17 lakh on shopping at Titan, and over Rs 10 lakh on spa sessions.