Apartment, spa: How Anmol Singh Jaggi siphoned money from Gensol
What's the story
Anmol Singh Jaggi, co-founder of Gensol Engineering, is under the scanner of the Securities and Exchange Board of India (SEBI) for funding his extravagant lifestyle using company money.
The regulatory body passed an interim order against him, which states he bought a multi-crore apartment, had dirhams (UAE currency) worth nearly ₹2 crore, and spent ₹26 lakh on golf gear.
He also indulged in spa sessions with bills running into lakhs.
Reason
Why did SEBI take action?
The SEBI passed an order barring Jaggi and Puneet Singh Jaggi (another Gensol founder), from holding key positions in the company or being part of the securities market until further notice.
This is because they have been accused by the agency of defaulting on debt repayment for electric vehicle purchases by ride-hailing start-up BluSmart.
Both Anmol and Puneet are promoters of BluSmart.
Fund diversion
Misuse of company funds for personal and family use
The SEBI document shows Jaggi diverted almost ₹25.76 crore of company funds for personal and family use.
This included lavish spending on credit cards, spa sessions, watches, and a golf set among other things.
His wife received ₹2.98 crore while his mother got ₹6.20 crore from these funds.
The misuse of company resources has raised concerns about financial ethics within the organization.
List
Money was spent on these items
SEBI's order further details Jaggi's luxury purchases and investments.
He owned ₹1.86 crore worth of dirhams, had a personal investment of ₹23 lakh in ICICI Securities, and spent over ₹9.95 lakh on his credit card.
His extravagant spending comprised ₹26 lakh on a golf set from TaylorMade, ₹17.28 lakh for luxury purchases from Titan Company, ₹8 lakh at Mayo Design, ₹10.36 lakh on spa sessions, and ₹3 lakh on MakeMyTrip for personal travel.
Usage
Funds used for luxury apartment purchase and start-up investment
The SEBI document showed that Jaggi used Gensol's funds to pay ₹5 crore for a DLF Camellias Apartment in Gurugram.
Around ₹42.94 crore from a larger loan secured by Gensol was diverted via Jaggi-promoted Capbridge Ventures to buy the DLF Camellias house.
Also, ₹50 lakh from Gensol's funds were invested in Ashneer Grover's new start-up, Third Unicorn.