BluSmart’s Puneet Singh Jaggi detained from Delhi hotel; ED searches Gensol premises in Delhi, Gurugram, Ahmedabad | Company Business News

The Enforcement Directorate (ED) on Thursday detained Gensol Engineering co-promoter and BluSmart co-founder Puneet Singh Jaggi from a hotel in Delhi and conducted searches against the company, a report quoting officials has said.

The ED conducted searches under the provisions of the Foreign Exchange Management Act (FEMA) at Gensol’s offices in Delhi, Gurugram and Ahmedabad, according to a report by news agency PTI/

The two brothers of beleaguered Gensol Engineering, Puneet Singh Jaggi and Anmol Singh Jaggi, are under the lenses of the probe agency after markets regulatory SEBI reported them for alleged financial misconduct and diversion of funds.

According to sources quoted by PTI, Puneet Jaggi was detained by the ED from a Delhi hotel while Anmol Jaggi is stated to be in Dubai.

The ED action is based on the SEBI order which claimed that Gensol Engineering obtained loans from Power Finance Corporation and IRDEA Ltd for procurement of EVs and EPC contracts.

However, according to the SEBI report, the company instead of utilising these funds for the intended purposes had diverted the funds for purchasing the assets in personal name of promoters or their relatives or in various shell entities floated by the group.

The Gensol story

On April 15, the Securities and Exchange Board of India (SEBI) barred the Jaggi brothers from accessing the Indian stock markets until further notice in connection with a case involving fund diversion and governance lapses.

SEBI in its report revealed that Gensol took out loans worth ₹978 crore from state-sponsored IREDA and PFC. A major portion of this loan was used to fund the acquisition of electric vehicles (EVs) for its cab operations arm, BluSmart. However, the remaining amount was used by the Jaggi brother for their own benefit, SEBI alleged.

The markets regulator has also barred the Jaggi brothers from holding the post of promoters or other such categories until further notice.

Even though Gensol denied defaulting on its debts, SEBI confirmed that the company has defaulted on its repayments, which led to rise of further concerns about the financial practices in the company and Gensol’s association with BluSmart, according to Mint’s earlier report.

Since then, Gensol Ltd shares have spiralled, hitting the lower circuit for 11 straight sessions.

SEBI received a complaint in June 2024 related to the manipulation of share price and diversion of funds from Gensol and thereafter, started examining the matter.