The share slipped from Rs 1000 to Rs 46, a big announcement was made amidst the action of SEBI and ED

News Topical, Digital Desk : Gensol Engineering, an EPC company undergoing the Corporate Insolvency Resolution Process (CIRP), has issued an advertisement seeking bids from interested parties to lease old electric vehicles at a fixed monthly rent. The interim resolution professional has been quoted as saying that these vehicles are available at a fixed monthly rent and a nominal down payment.

Gensol Engineering said that about 4,000 old electric vehicles are available for lease in Delhi-NCR and Bangalore.

Who can bid for them?
These electric vehicles were earlier leased by Gensol Engineering to its related company Blusmart Mobility. Blusmart Mobility was started in 2019 for sustainable urban transportation. After the difficulties of Gensol Engineering, the operations of Blusmart were also affected, and now companies like Avera Cabs, Uber Electric, and Everest Fleet can bid to lease these vehicles. An expert in the mobility sector says that there is a lot of space for electric cabs in urban transportation. Conscious customers prefer such cabs and are ready to pay more fare for good service. Moneycontrol quoted one such expert as saying, "However, it will also depend on the condition of the vehicles, as Blusmart's operation has been closed since April. Gensol Engineering's electric vehicles, especially their batteries, may need maintenance." 

What was SEBI's action? On April 15, SEBI issued an interim order against Gensol Engineering and its promoters, barring the company and the promoters from participating in the securities market. SEBI ordered the promoters - Anmol Singh Jagi and Punit Singh Jagi - to step down from the company's board. SEBI's preliminary investigation found that Gensol had taken a loan of Rs 977.75 crore from PSU NBFCs - IREDA and PFC - out of which only Rs 663.89 crore was to buy 6,400 electric vehicles. SEBI found that Gensol Engineering purchased only 4,704 electric vehicles instead of 6,400 and spent Rs 567.73 crore for this. SEBI alleged that the remaining amount was not used to buy electric vehicles, but was diverted by the promoters for their personal use. Rating agency ICRA was the first to raise the issue of fake documents to repay the loan and Care Rating also raised concerns about Gensol Engineering in March. In June 2024, SEBI received a complaint of manipulation of share prices and fund diversion, after which the investigation began. After SEBI's interim order, the Enforcement Directorate (ED) and the Ministry of Corporate Affairs have also started investigating the company.

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