Gensol Engineering Limited has announced that its Managing Director Anmol Singh Jaggi and Whole-time Director Puneet Singh Jaggi have resigned from their roles, effective May 12, 2025. The resignations include their removal from all board-related positions and committees. This sudden leadership exit comes as the company faces a serious investigation by the Securities and Exchange Board of India (SEBI).
According to a report by Entrackr, the Jaggi brothers stepped down to comply with SEBI’s Interim Order dated April 15, 2025. SEBI has ordered a forensic audit of Gensol’s financial records covering the period from FY22 to FY25. The order also bans the two brothers from accessing the securities market or holding any key management roles within the company during the investigation.
Allegations of Fund Misuse
The SEBI probe alleges that the promoters misused funds borrowed for purchasing electric vehicles meant for BluSmart, Gensol’s EV affiliate. Instead of using the money for business purposes, the order claims the funds were diverted for personal use. Expenses reportedly include buying a luxury apartment in Gurgaon, purchasing golf equipment, foreign currency transactions, and overseas travel.
The resignations have left a leadership gap at Gensol Engineering. So far, the company has not named any interim or permanent replacements. No new board restructuring plans have been made public either. The lack of leadership at such a crucial time adds to investor and stakeholder concerns about the company’s stability and future.
BluSmart Faces Shutdown
The SEBI allegations have also had a major impact on BluSmart, Gensol’s electric vehicle partner. Following the controversy, BluSmart has suspended its operations in major cities like Bengaluru, Delhi, and Mumbai. The company is backed by notable investors like BP Ventures and Mayfield. However, the crisis has triggered protests from drivers due to unpaid wages and job losses.
Reports had earlier suggested that Uber was considering acquiring BluSmart’s electric vehicle fleet. However, the recent developments have reportedly stalled those talks. Meanwhile, Evera Cabs, also known as Prakriti Mobility, has taken back nearly 500 EVs that were previously run by BluSmart.
Future Remains Uncertain
BluSmart is said to be in talks with two asset funds that focus on climate and mobility sectors for a possible revival. However, given the severity of the financial allegations and ongoing investigation, the future of both Gensol Engineering and BluSmart remains highly uncertain.
