Synopsis
The Enforcement Directorate has detained Puneet Jaggi, co-founder of BluSmart, in connection with an investigation into Gensol Engineering Ltd. The agency conducted raids related to allegations of financial misconduct and fraud.Key Takeaways
- Puneet Jaggi detained by ED.
- Raids occurred at offices of Gensol Engineering Ltd.
- Investigations into financial irregularities by SEBI.
- Complaints filed by PFC for fraudulent loans.
- Missing receipts for EVs under scrutiny.
New Delhi, April 25 (NationPress) The Enforcement Directorate (ED) has taken into custody Puneet Jaggi, co-founder of BluSmart, from a hotel in Delhi following a series of raids linked to Gensol Engineering Ltd.
The operations targeted the company's offices in Delhi, Gurugram, and Ahmedabad under the Foreign Exchange Management Act (FEMA).
The ED's investigation focuses on Gensol promoter brothers Anmol Singh Jaggi and Puneet Singh Jaggi, spurred by a SEBI report alleging financial misconduct, mismanagement, and diversion of funds.
As of now, Gensol has not released a statement.
Previously, Power Finance Corporation Ltd (PFC), a government entity, lodged a complaint with the Delhi police against the Jaggi brothers, accusing them of submitting fraudulent documents to secure loans for the acquisition of electric vehicles (EVs).
“PFC has initiated a complaint with the Economic Offences Wing of the Delhi police regarding the submission of falsified documentation. PFC is dedicated to protecting its interests and ensuring loan recovery while maintaining transparency in operations,” stated the public sector financial institution.
Gensol, the parent organization of the all-electric vehicle (EV) application BluSmart, which provided eco-friendly cab services, allegedly fabricated letters from its two lenders—PFC and Indian Renewable Energy Development Agency Ltd (IREDA)—to falsely demonstrate regular debt servicing. The deception was uncovered when credit rating agencies began to authenticate the letters with the lenders.
The public sector company is also conducting an internal review under its anti-fraud policy. The investigation will prioritize tracing missing delivery receipts for EVs funded by the PFC.
Gensol secured loans totaling Rs 978 crore from PFC and IREDA to procure electric vehicles for its online green taxi service, which gained considerable traction in Delhi NCR and Bengaluru.
A SEBI investigation revealed that Gensol could not account for Rs 262.13 crore of the funds.
On April 15, 2025, SEBI issued a comprehensive interim order outlining the discrepancies at Gensol. The order stated that the company's promoters, including Anmol and Puneet Singh Jaggi, had treated the enterprise like their personal 'piggy bank'. There were inadequate financial controls, and the promoters diverted loan funds to themselves or affiliated entities.
Gensol obtained loans amounting to Rs 977.75 crore from IREDA and PFC between FY22 and FY24. Of this, Rs 663.89 crore was allocated for the purchase of 6,400 EVs. However, the company disclosed it purchased only 4,704 vehicles, valued at Rs 567.73 crore, as confirmed by supplier Go-Auto.
