Synopsis
A shocking investigation reveals that Gensol Engineering Limited's promoters diverted electric vehicle loan funds to purchase a luxury apartment in Gurugram's DLF Camellias. SEBI has barred the Jaggi brothers from company directorship and securities access, highlighting significant financial discrepancies.Key Takeaways
- Promoters misused EV loan funds for personal real estate.
- SEBI intervened, barring Jaggi brothers from directorship.
- Discrepancies in EV procurement raise concerns.
- BluSmart faces financial difficulties and delayed salaries.
- Investigation continues into Gensol's financial practices.
Mumbai/New Delhi, April 16 (NationPress) In a startling discovery, the promoters of Gensol Engineering Limited (GEL), Anmol Singh Jaggi and Puneet Singh Jaggi, have been accused of misappropriating funds intended for the purchase of electric vehicles (EVs) to acquire a lavish apartment in the exclusive residential development known as The Camellias by DLF in Gurugram.
This information surfaced as part of an interim ruling issued by the Securities and Exchange Board of India (SEBI) on April 15, prompting significant action against Gensol Engineering Limited and its promoters.
The SEBI has prohibited both Jaggi brothers from serving as directors within the company and has limited their access to the securities market.
As per the regulator, funds borrowed to procure EVs for the ride-hailing service BluSmart were channeled through various entities and ultimately used for personal benefit.
According to the market regulator, “Funds acquired by Gensol as loans for EV procurement were, through complex transactions, partially utilized to purchase a luxury apartment in The Camellias, Gurugram, under a firm where the MD of Gensol and his brother are designated partners,” stated the interim order.
The SEBI also highlighted that Rs 5 crore, initially paid as a booking deposit by Jasminder Kaur, the mother of Anmol Singh Jaggi, originated from Gensol. Furthermore, it was noted that after DLF returned the advance to Kaur, the funds did not revert to the company but were instead transferred to another related entity of Gensol.
The market regulator discovered that Gensol Engineering had acquired loans totaling Rs 978 crore between 2021 and 2024 from two public financial institutions -- the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC).
Of this amount, Rs 664 crore was earmarked specifically for purchasing 6,400 EVs, intended to be leased to BluSmart.
However, in a stock exchange disclosure in February 2025, the company reported that only 4,704 EVs had been acquired to date.
Gensol's EV supplier, Go-Auto, confirmed this, stating that the overall cost of these vehicles was Rs 568 crore.
This resulted in a discrepancy of approximately Rs 262 crore, which the SEBI noted remains unaccounted for, even a year after the company received the final loan disbursement.
The SEBI investigation revealed that once the funds were transferred from Gensol to Go-Auto -- ostensibly for EV purchases, the money was frequently redirected back to Gensol or to entities closely linked to the Jaggi brothers.
In one instance, a significant portion of the loan amount received from the IREDA in 2022 was sent to Capbridge, a related party.
Capbridge subsequently transferred Rs 42.94 crore to DLF for an apartment in The Camellias project. DLF confirmed that the funds were utilized for acquiring the property in the name of a firm where both Anmol and Puneet Singh Jaggi serve as designated partners.
Shares of Gensol Engineering dropped by 5 percent on the National Stock Exchange (NSE) on Wednesday and remained at the lower circuit limit of Rs 122.68.
In the meantime, BluSmart Mobility has reportedly postponed salary disbursements for March as the electric cab-hailing startup grapples with financial challenges. Reports indicate that co-founder Anmol Singh Jaggi, in a communication to employees, assured that all outstanding payments will be settled by the end of April.
“Owing to current cash flow constraints, there will be a slight delay in salary processing. However, we want to reassure you that all dues will be cleared within April,” Jaggi allegedly stated in the email.
