The Securities and Exchange Board of India’s (SEBI) interim order on Gensol Engineering has revealed BluSmart co-founder Anmol Singh Jaggi’s lavish lifestyle expenditures.
On April 15, the markets watchdog barred Gensol Engineering’s founders Anmol Singh Jaggi and Puneet Singh Jaggi, from holding key positions in the company, and participating in the securities market until further orders.
The two have been accused of defaulting on debt repayment related to electric vehicle purchases for ride-hailing startup BluSmart.
The SEBI order document shows how Anmol Singh Jaggi bought a multi-crore DLF Camellias apartment, had ₹1.86 crore worth of dirhams in possession, bought golf gear worth ₹26 lakh, and indulged in spa sessions with bills reaching lakhs.
Anmol Singh Jaggi’s Lavish Lifestyle: How BluSmart Co-Founder Diverted Funds for Private Expenses
According to the SEBI document, Anmol Singh Jaggi diverted nearly ₹25.76 crore of BluSmart’s company funds for personal and family use, including lavish spending on credit card, spa sessions, watches, a golf set, and more. We take a look:
DLF Camellias Apartment worth ₹5 crore Bought With Gensol Funds
Besides these, the documents showed that Anmol Singh Jaggi used Gensol funds to pay ₹5 crore for a DLF Camellias Apartment in Gurgaon. The order showed that around ₹42.94 crore from a larger loan secured by Gensol was diverted through Anmol Singh Jaggi promoted Capbridge Ventures to buy the DLF Camellias house.
Other big ticket investments include ₹50 lakh from Gensol funds, which were invested in Ashneer Grover’s new startup, Third Unicorn.
Overall, the use of company funds for personal and luxury expenditure was written off from Gensol books, causing losses to company investors.
Gensol Share Price Tanks, SEBI Puts Stock Split on Hold
Gensol Engineering share price hit the 5 per cent lower circuit in the morning trade on April 16.
The share price of Gensol Engineering was down 5 per cent on the BSE on April 16, after opening at ₹123.65. Gensol’s shares closed at ₹130.15 on the BSE the previous day. On the National Stock Exchange (NSE), the share price of Gensol Engineering was trading at ₹122.68, also down by 5 per cent.
This came after SEBI took strict action against the promoters and put the proposed 1:10 stock split plan on hold. SEBI has deferred the move saying it may not be in the interest of the investors at this stage.
