Gensol Electric Vehicles, the electric vehicle arm of Gensol Engineering, is set to wind up its operations by 30 April, 2025. The 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 recently laid off its remaining employees as part of the shutdown process. Around 100 staff members have been impacted, with earlier layoffs affecting about 50 more. Gensol EV had been working on producing two-seater electric cars but has now halted all plans as scrutiny over its financial dealings intensifies.
SEBI’s investigation centres on accusations of fund diversion and submission of false electric vehicle pre-orders. Reports suggest that Gensol secured loans worth 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 alleged to have been siphoned off through financial transactions.
An interim SEBI order released on 16 April pointed to systemic fraud and raised red flags about the company’s leadership. The investigation reportedly revealed that the diverted funds were routed through layered transactions and used for personal benefit by key executives within the group.
The shutdown of Gensol EV is part of a larger fallout involving multiple entities within the Gensol Group. The inquiry was triggered by a complaint filed in June 2024, raising concerns over share price manipulation and misuse of funds. The closure has not only affected employees but also casts uncertainty over the future of the group’s electric mobility ambitions.
