Gurugram: The Jaggi brothers, who are the promoters of Gensol Engineering and BluSmart, are facing deeper trouble after new findings by the Securities and Exchange Board of India (SEBI). The financial watchdog has revealed that the brothers submitted fake documents to government lenders to hide defaults and raise new loans.
SEBI’s investigation shows that Gensol Engineering gave false information to public sector lenders like the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). These loans, worth nearly Rs 978 crore, were supposed to support electric vehicle purchases for BluSmart, a ride-hailing service linked to Gensol.
Misuse of Electric Vehicle Loans
Out of the total loan amount, over Rs 200 crore was reportedly routed through a car dealership and sent to other companies connected to the Jaggi brothers. Some of this money was used for personal luxury purchases, including high-end flats in DLF Camellias, where one apartment can cost Rs 70 crore or more.
According to SEBI, Gensol was expected to contribute 20 percent equity to the project. That meant a total of Rs 829.86 crore should have been accounted for. However, Rs 262.13 crore remains unexplained, leading to major concerns about financial mismanagement.
Gensol Works as Personal Bank
In a detailed interim order released on April 15, SEBI stated that the Jaggi brothers, including Anmol and Puneet Singh Jaggi, treated the company like a personal piggy bank. The report noted the absence of proper financial controls and pointed out how funds were repeatedly diverted to personal or related entities.
SEBI also visited Gensol’s electric vehicle plant in Pune, which had been promoted as a key manufacturing site. However, the inspection revealed that no real production was taking place. The facility was a leased space, and only two or three workers were present at the time of the visit.
False Claims About EV Orders
Gensol earlier told the stock exchanges that it had received pre-orders for 30,000 EVs after the Bharat Mobility Global Expo 2025. But SEBI found that these were only Memoranda of Understanding (MoUs) with nine firms for 29,000 vehicles and not actual orders. The regulator warned that such misleading statements could seriously hurt investors.
About BluSmart and Its Founders
BluSmart Mobility, the EV ride-hailing startup, was launched in January 2019 in Gurugram by Anmol Singh Jaggi, Puneet Singh Jaggi, and Punit K. Goyal. It gained early success with $3 million in angel funding from investors like Hero MotoCorp, Micromax, and Jito Angel Network. But the company now faces a credibility crisis after being linked to a green cover scam that has shaken confidence in India’s clean mobility space.
With the scale of financial irregularities and involvement of public funds, SEBI may carry out deeper investigations to check if other officials or institutions failed in due diligence. The Gensol scam has now become a major case study in how regulatory gaps and unchecked control can lead to massive fraud under the cover of green innovation.
