Gensol Rs 977.75 Crore Fraud Case: ED detains BluSmart co-founder Puneet Jaggi from Delhi hotel

The Enforcement Directorate (ED) has reportedly detained Puneet Jaggi, co-founder of all-electric cab service BluSmart, from a hotel in Delhi as part of its ongoing investigation into financial irregularities at Gensol Engineering Ltd. 

The raids were conducted at multiple company offices in Delhi, Gurugram, and Ahmedabad under the Foreign Exchange Management Act (FEMA), according to IANS report.

The ED’s probe follows a damning interim order from SEBI, which accused Gensol promoters Anmol Singh Jaggi and Puneet Singh Jaggi of treating the company as their “personal piggy bank”. SEBI said there were no adequate financial controls and that promoters had diverted loan money for personal use or to related entities.

Also Read:Gensol Engineering dues at Rs 307 crore, exploring all action, options: PSU PFC

PFC files police complaint over fake loan servicing claims

Government-owned Power Finance Corporation (PFC) filed a complaint with Delhi Police’s Economic Offences Wing, accusing Gensol of submitting falsified documents to obtain loans for electric vehicle (EV) purchases. The company allegedly forged letters from PFC and IREDA to falsely show regular loan repayments. The deception came to light after credit rating agencies began verifying those letters with the lenders.

In its official statement, PFC confirmed an internal investigation is also underway under its anti-fraud policy to trace missing delivery receipts for EVs financed by the company. “PFC is committed to safeguarding its interests and ensuring loan recovery while upholding transparency,” the PSU said.

Also Read:Gensol Crisis: How Gensol-Blusmart promoters moved funds to fuel their luxury lifestyle  

Rs 977 crore EV loan utilisation under scanner

Between FY22 and FY24, Gensol secured loans totalling Rs 977.75 crore from PFC and IREDA, of which Rs 663.89 crore was earmarked for the purchase of 6,400 EVs. However, the company has admitted to acquiring only 4,704 vehicles worth Rs 567.73 crore, as verified by supplier Go-Auto. SEBI’s findings show Rs 262.13 crore remains unaccounted for.

Gensol, the parent firm of BluSmart, which operates green taxi services across Delhi NCR and Bengaluru, has not yet issued an official statement on the ED action or SEBI findings.