Gensol Electric Vehicles, the electric vehicle division of Gensol Engineering, is set to cease operations by April 30, 2025. This decision follows an ongoing investigation by the Securities and Exchange Board of India (SEBI), which is looking into allegations of financial irregularities within the parent company.
The company has recently laid off its remaining employees as part of the shutdown process. Approximately 100 staff members have been affected, following earlier layoffs of around 50 more. Gensol EV had been developing two-seater electric cars but has now halted all plans as scrutiny over its financial dealings intensifies.
SEBI’s investigation focuses on accusations of fund diversion and the submission of false electric vehicle pre-orders. Reports indicate that Gensol secured loans totaling over Rs 663 crore from public-sector financiers such as IREDA and PFC, intended for the purchase of 6,400 EVs. However, only 4,704 vehicles were actually delivered, valued at Rs 567.73 crore. The remaining Rs 262 crore is reportedly alleged to have been siphoned off through questionable financial transactions.
An interim SEBI order released on April 16 highlighted systemic fraud and raised concerns about the company’s leadership. The investigation reportedly found that the diverted funds were channeled through complex financial transactions and were used for the personal benefit of key executives within the group.
The shutdown of Gensol EV is part of a broader fallout involving multiple entities within the Gensol Group. The inquiry was initiated due to a complaint filed in June 2024, which raised concerns about share price manipulation and misuse of funds. The closure has not only impacted employees but also created uncertainty regarding the future of the group’s electric mobility ambitions.
