New Delhi, April 18 — Once celebrated for their pioneering role in India’s clean energy movement, brothers Anmol Singh Jaggi and Puneet Singh Jaggi are now facing serious allegations of financial misconduct. According to an agency report, the Securities and Exchange Board of India (SEBI) has barred the Jaggi brothers from participating in securities markets until further notice, following an interim order released on Tuesday.
The investigation revolves around their flagship company, Jainsol Engineering, a public-listed firm engaged in solar consulting, engineering procurement and construction (EPC), and leasing of electric vehicles. The company was listed on the BSE SME platform on October 15, 2019, and was later moved to the main board of both BSE and NSE on July 3, 2023.
SEBI’s probe uncovered that portions of corporate loans raised by Jainsol Engineering were allegedly diverted for personal use by the promoters. This includes the purchase of luxury apartments, transactions benefiting related parties, and financial transfers to family members. The findings have triggered concerns over corporate governance and misuse of public funds.
From FY 2016-17 to FY 2023-24, Jainsol Engineering reported rapid financial growth, with operating profit surging from Rs 2 crore to Rs 209 crore and net profit climbing from Rs 2 crore to Rs 80 crore. However, its stock plummeted from a peak of Rs 1,126 per share a year ago to just Rs 116, as credit rating agencies downgraded the company and flagged governance risks.
SEBI initiated its inquiry after receiving multiple complaints and sought clarification from credit rating agencies regarding Jainsol’s loan servicing. While Jainsol presented letters claiming regular repayments to Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), both lenders later denied issuing such certifications.
Further investigation revealed that significant amounts, supposedly allocated for EV procurement, were routed to related entities owned by the Jaggi family or spent on non-business purposes. A notable instance included Rs 42.94 crore being used via Anmol Singh Jaggi’s Capbridge Ventures to purchase a luxury apartment in DLF Camellias, Gurgaon.
The regulator concluded that the promoters were treating the company as a personal fund reserve, with little regard for shareholder interests. SEBI’s action highlights a stark fall from grace for the Jaggi brothers, once seen as champions of India’s renewable revolution, now facing allegations that could tarnish their credibility and impact investor trust in the clean energy sector.
