PFC Initiates Police Action Against Gensol for Alleged Loan Fraud
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Synopsis
PFC has accused Gensol Engineering Ltd of submitting fraudulent documents to secure loans for electric vehicles, resulting in a police complaint in Delhi. The case reveals financial misconduct involving large sums diverted for personal use.
Key Takeaways
- PFC has filed a police complaint against Gensol for loan fraud.
- Gensol allegedly forged documents to misrepresent debt servicing.
- Investigation highlights over Rs 200 crore misappropriated.
- SEBI reveals significant financial irregularities at Gensol.
- Gensol failed to account for over Rs 262 crore.
New Delhi, April 23 (NationPress) Government-owned Power Finance Corporation Ltd (PFC) has lodged a complaint with the Delhi police against the Jaggi brothers-promoted Gensol Engineering Ltd for purportedly submitting fraudulent documents to acquire loans intended for purchasing electric vehicles (EVs).
“PFC has reported to the Economic Offences Wing of the Delhi police regarding the creation of falsified documents. PFC is dedicated to protecting its interests and ensuring the recovery of its loan while maintaining transparency within its operations,” stated the public sector financial entity.
Gensol, the parent company of the all-electric vehicle app BluSmart, which offered environmentally friendly cab services, allegedly fabricated correspondence from its two lenders — PFC and the Indian Renewable Energy Development Agency Ltd (IREDA) — to falsely indicate regular servicing of its debts. This deception was uncovered when credit rating agencies started to validate the letters with the actual lenders.
The public sector undertaking is also conducting an internal review under its anti-fraud policy. The investigation will concentrate on locating missing delivery receipts for the EVs financed by PFC.
Gensol had borrowed approximately Rs 978 crore from PFC and IREDA for the acquisition of electric vehicles to operate an online green taxi service, which gained significant popularity in Delhi NCR and Bengaluru.
While these loans were designated for purchasing EVs, over Rs 200 crore of the funds were redirected through a car dealership to other businesses associated with the promoters. Some of the funds were utilized for luxury expenditures, including properties in DLF Camellias, where the starting price for an apartment is Rs 70 crore.
A SEBI investigation disclosed 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 issues at Gensol. The order indicated that the promoters, including Anmol and Puneet Singh Jaggi, had treated the company as their personal 'piggy bank'. There were inadequate financial controls, and funds from loans were diverted to personal or related entities.
Gensol secured loans totaling Rs 977.75 crore from IREDA and PFC between FY22 and FY24. Of this, Rs 663.89 crore was specifically allocated for purchasing 6,400 EVs. However, the company acknowledged it had purchased only 4,704 vehicles, valued at Rs 567.73 crore, as confirmed by supplier Go-Auto.
The SEBI investigation report further indicated that there was “no manufacturing activity” at Gensol Engineering Ltd’s EV plant in Pune, with merely two to three laborers present at the site, which was leased.
