BluSmart Co-founder Puneet Jaggi Detained by ED in Gensol Case

The Enforcement Directorate (ED) has detained Puneet Jaggi, co-founder of electric cab company BluSmart, in connection with a financial investigation involving Gensol Engineering Ltd. According to sources, Jaggi was picked up from a Delhi hotel on Thursday after the ED conducted searches related to violations under the Foreign Exchange Management Act (FEMA).

Raids Across Multiple Cities

The ED searched offices linked to Gensol Engineering in Delhi, Gurugram, and Ahmedabad. The investigation targets brothers Puneet Jaggi and Anmol Singh Jaggi, who are promoters of Gensol. The probe follows a SEBI report that accused the duo of misusing company funds, poor corporate governance, and financial misconduct.

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BluSmart Pauses Cab Bookings

The Jaggi brothers also run BluSmart Mobility, which operates electric taxis in Delhi-NCR, Bengaluru, and Mumbai. Following the SEBI report, BluSmart has temporarily stopped accepting new ride bookings. SEBI has also barred the Jaggi brothers from accessing the securities market for now.

Family Members and Properties Under Scrutiny

While Puneet Jaggi was found in Delhi, Anmol Singh Jaggi is reportedly in Dubai. Their wives were located in Pune, and the ED visited their luxury residences in Gurugram’s DLF Camellias and a site in Ahmedabad. Authorities are likely to register a money laundering case after Delhi Police’s Economic Offences Wing (EOW) files an FIR, based on complaints from public lenders IREDA and PFC.

Allegations of Fund Diversion and Asset Purchases

The ED’s action is based on SEBI’s claim that Gensol took loans from PFC and IREDA to buy electric vehicles and for EPC contracts. Instead, the company allegedly diverted the funds to buy personal assets under the names of the promoters, their relatives, or shell companies. Some of these diverted funds were reportedly used to buy foreign exchange and assets abroad, including in Dubai and the US.

Alleged Role of EV Distributor

The ED is also examining the involvement of Ajay Aggarwal from Go Auto Pvt Ltd, a Tata EV distributor. He is suspected of helping Gensol misuse the funds rather than supplying electric vehicles as intended.

SEBI’s Key Findings

According to SEBI, the promoters treated Gensol Engineering like their own personal company. The report mentions misuse of term loans to buy luxury apartments, expensive golf sets, pay off personal credit card bills, and transfer money to relatives. SEBI warned that such reckless fund diversion could eventually hurt the company’s finances and harm shareholders.

About Gensol Engineering

Gensol Engineering, listed on both the BSE and NSE, provides services in solar power consulting, EPC (Engineering, Procurement, and Construction), and electric vehicle leasing.

On April 25, Gensol Engineering share price hit its 52-week low at ₹90.16, which is also the stock’s opening, high, and low price for the day. The stock has declined by 5% to ₹90.16, with a market capitalisation of ₹346.63 crore and a P/E ratio of 3.35.

Conclusion

The unfolding investigation into Gensol Engineering and its promoters reveals serious concerns about financial mismanagement and corporate ethics. As authorities delve deeper into alleged fund diversion and misuse of public loans, the case highlights the importance of strong governance in emerging green-tech ventures. Investors and stakeholders will be closely watching for further developments and regulatory actions in the days ahead.

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