Enforcement Directorate Requests Look-Out Notice for Jaggi Brothers in Gensol Investigation
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Synopsis
The Enforcement Directorate has requested a look-out circular against Puneet and Anmol Singh Jaggi, founders of Gensol Engineering Ltd, amid investigations into fund diversion from the troubled company.
Key Takeaways
- ED seeks look-out notice for Jaggi brothers.
- Investigation into alleged fund diversion from Gensol Engineering Ltd.
- Loans misappropriated for personal use and luxury purchases.
- PFC files complaint against Gensol for fraudulent loans.
- Ongoing probes into foreign exchange violations.
New Delhi, April 25 (NationPress) The Enforcement Directorate has requested the Bureau of Immigration to issue a look-out circular against Puneet Singh Jaggi and Anmol Singh Jaggi, the founders of Gensol Engineering Ltd, as part of an investigation into the alleged diversion of funds from the troubled company, sources reported on Friday.
A portion of the loans secured by Gensol from financial institutions is believed to have been misappropriated to offshore accounts, potentially violating the Foreign Exchange Management Act (FEMA). Ongoing investigations are focused on gathering information regarding other entities associated with the Jaggi brothers that might have been utilized as fronts to funnel money to international accounts, according to an NDTV Profit report.
Anmol Singh Jaggi is reportedly located in Dubai, while Puneet Singh Jaggi was interrogated by ED officials for over six hours on Thursday regarding the case.
Earlier reports suggested that Puneet Singh Jaggi had been detained; however, a senior ED official later refuted these claims, clarifying that no arrest or detention had occurred.
The ED has conducted searches at several locations in Delhi, Gurugram, and Ahmedabad associated with the Jaggi brothers. The investigation is probing potential foreign exchange infractions involving unauthorized remittances estimated between Rs 200 crore and Rs 300 crore.
The Power Finance Corporation Ltd (PFC), a government-owned entity, has filed a complaint with the Delhi Police against Gensol Engineering Ltd for allegedly submitting fraudulent documents to secure loans for purchasing electric vehicles.
The public sector undertaking is also conducting an internal examination under its anti-fraud policy. This investigation aims to trace missing delivery receipts for the EVs financed by the PFC.
Gensol secured loans amounting to Rs 978 crore from the PFC and the Renewable Energy Development Agency (IREDA) to acquire electric vehicles for an online green taxi service, which gained significant popularity in the Delhi NCR and Bengaluru.
Although these loans were intended for purchasing EVs, over Rs 200 crore was allegedly funneled through a car dealership and transferred to other companies connected to the promoters. A portion of the funds was reportedly utilized for luxury acquisitions, including apartments in DLF Camellias, where prices begin at Rs 70 crore.
A SEBI investigation has indicated that Gensol has not accounted for Rs 262.13 crore of the funds.
On April 15, 2025, SEBI issued a comprehensive interim order detailing the issues at Gensol. The order stated that the promoters, including the Jaggi brothers, had treated the company as their personal 'piggy bank'. There were insufficient financial controls, and the promoters allegedly diverted loan amounts for personal gain or to affiliated entities.
