Key Points

The findings were part of an interim order issued by the Securities and Exchange Board of India (SEBI) on April 15, which has led to a major crackdown against Gensol Engineering Limited (GEL) and its promoters.

The SEBI has barred both Jaggi brothers from holding any directorship in the company and restricted them from accessing the securities market.

According to the regulator, loans taken to buy EVs for the ride-hailing service BluSmart were routed through multiple entities and ultimately used for personal gains.

"Funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners," the market regulator said in its interim order.

"It was separately noted that Rs 5 crore, which was initially paid as booking advance by Jasminder Kaur, mother of Anmol Singh Jaggi, was also sourced from Gensol. Further, it was noted that once DLF returned the advance to Kaur, the funds did not go back to the Company but were instead credited to another related party of Gensol," the SEBI added.

The market regulator found that Gensol Engineering had taken loans worth Rs 978 crore between 2021 and 2024 from two public lenders -- the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC).

Out of this, Rs 664 crore was allocated specifically for buying 6,400 EVs, which were supposed to be leased to BluSmart.

However, the company revealed in a stock exchange filing in February 2025 that only 4,704 EVs had been procured so far.

Gensol's EV supplier, Go-Auto, also confirmed the same, saying that the total cost of these vehicles was Rs 568 crore.

This left a gap of around Rs 262 crore, which, the SEBI noted, remains unaccounted for, even a year after the company received the last tranche of loan funds.

The SEBI's investigation showed that once the funds were transferred from Gensol to Go-Auto -- allegedly for purchasing EVs, the money was often routed back to Gensol or to entities closely connected to the Jaggi brothers.

In one such case, a large part of the loan amount received from the IREDA in 2022 was transferred to Capbridge, a related party.

Capbridge then sent Rs 42.94 crore to DLF for an apartment in The Camellias project. DLF confirmed that the money was used to buy the property in the name of a firm where both Anmol and Puneet Singh Jaggi are designated partners.

Gensol Engineering’s shares crashed 5 per cent on the National Stock Exchange (NSE) on Wednesday and remained stuck at the lower circuit limit of Rs 122.68.

Meanwhile, BluSmart Mobility has reportedly delayed salary payments for the month of March as the electric cab-hailing startup faces a financial crunch. According to media reports, co-founder Anmol Singh Jaggi, in an email to employees, assured that all pending dues will be cleared by the end of April.

“Due to current cash flow constraints, there will be a short delay in processing salaries. However, we want to assure you that all dues will be cleared within the month of April itself,” Jaggi reportedly said in the email.

- IANS