(Chakan) Pune, India | Nitin Sindhu VY
The Pune connection of the Gensol Engineering Company scam, which embezzled hundreds of crores of rupees by defrauding government financial institutions and shareholders, has been exposed. Gensol, which embezzled loans on the basis of fake documents, increased the company's bogus rating and inflated the price of shares, has looted crores by opening a bogus electric vehicle factory in Chakan Industrial Estate near Pune and showing bogus orders. Shareholders and employees have been brought into the trap.
Gensol is a living example of how corrupt financial institutions and lax regulatory bodies make money for the poor, investors suffer and the credibility of the entire industry sector is at risk. Considering the current boom in the electric vehicle manufacturing sector, Anmol Singh Jaggi and Puneet Singh Jaggi, the company, promoted by Jensol Engineering, cheated the Indian Renewable Energy Development Agency and Power Finance Corporation with the help of fake documents and fake orders.
The engineering company pretended to have a factory in Chakan Industrial Estate for manufacturing electric three-wheelers. In reality, the officials who went to inspect the factory found an empty building and some workers doing minor work there. In reality, there was no trace of electric vehicle manufacturing at this place.
The company created the impression that as many as 30 thousand people had pre-registered for the three-wheeler electric vehicles manufactured by Jensol. In reality, no pre-registration was done for a single vehicle. 29 thousand people had expressed interest in buying this vehicle alone 'online'. The company had played a crooked game to inflate this figure. In fact, any manufacturer collects at least one and a half percent of the price in advance while taking pre-registration of its product. However, it had announced that there is no need to pay even a single rupee while pre-registering for its vehicles.
Due to these machinations of the company, even though there was not a single transaction, the share price of Gensol Engineering inflated by 12 times due to bogus documents and bogus registration. Instead of using the funds raised from various financial institutions and the stock market for the production of electric vehicles, the company bought luxury properties with that money. The hawala racket helped them to inflate the price of the company's shares in the stock market.
The auditors turned a blind eye to the bogus factory and orders. While all these developments were happening, regulatory bodies like SEBI and National Stock Exchange showed incomprehensible delay in taking necessary steps. In all these scams, investors have lost more than Rs 1,200 crore. Employees hired by the company, even in name, have lost their jobs and due to such incidents, those trying to set up new industries are being looked at with widespread suspicion.
What Happened?
- Fake Factory: Gensol claimed to have an electric vehicle (EV) factory in Pune. But when officials visited, they found an empty building—no machines, no production, just a few workers pretending.
- Fake Orders : They said they had 30,000 pre-orders for their new 3-wheeler. Truth? Zero real orders—just 29,000 people who clicked "interested" online (no money paid).
How Did They Fool Everyone?
- No Money Needed: Normally, companies take at least 1-5% deposit for pre-orders. Gensol took nothing—making it easy to fake numbers.
- Stock Market Trick: Their stock price went up 12 times in a year because of hype, not real business.
- Government Loans : They took ₹975 crore from banks (IREDA, PFC, REC) but misused the money—buying luxury apartments instead of EVs.
Who Helped Them?
- Dubai Connection: A businessman linked to illegal money transfers (hawala) helped pump up their stock price.
- Silent Regulators: SEBI and NSE took too long to act. Why?
- Fake Auditors: How did auditors not notice the empty factory and fake orders?
What Now?
- Punish the Guilty: The Jaggi brothers should face jail, not just fines.
- Get Money Back: Banks must find out who approved these loans without checking properly.
- Fix the System : Why do scams like this keep happening? Stricter rules are needed.
Who Suffered?
- Investors lost ₹1,200+ crore.
- Employees lost jobs.
- Real Startups suffer because frauds like this destroy trust.
Simple Explanation
Gensol lied about having a factory and fake orders to take loans and fool investors. When caught, everything collapsed. Now, people want justice and better laws to stop this from happening again.
Why does this matter?
Scams like this hurt ordinary people—those who invested, worked for the company, or believed in honest businesses.
What can we learn?
- Check before investing: If something looks too good to be true, it probably is.
- Ask questions: Why are regulators slow? Who is responsible?
- Demand action: Scammers should go to jail, not just pay small fines.
000
.jpeg)
