Faking loan letters, buying DLF flat, BluSmart shutting ops: How Jaggi brothers swindled Gensol funds

Months ago, BluSmart was on its way to dethroning Uber with its all-electric taxi fleet. Today, it is at the eye of the storm, thanks to market watchdog SEBI uncovered a major loan scam at Gensol Engineering (Gensol) involving its co-founder Anmol Singh Jaggi and his brother Puneet Singh Jaggi—the Jaggi brothers. The app has already suspended operations and it might soon become a fleet partner for Uber, according to latest reports.

So, how did this scam take place and what did the Securities and Exchange Board of India (SEBI) uncover?

Last week, SEBI slapped an interim order on Gensol Engineering alleging that its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, misused and diverted funds of the company “in a fraudulent manner”.

Jaggi brothers treated Gensol funds as ‘piggybank’

Both directors were “also the direct beneficiaries of the diverted funds”, the order stated. Moreover, the company “attempted to mislead SEBI, the CRAs, the lenders and the investors by submitting forged Conduct Letters purportedly issued by its lenders,” added SEBI.

Gensol Engineering’s funds were “routed to related parties and used for unconnected expenses, as if the Company’s funds were promoters’ piggybank,” stated SEBI in the interim order.

While the fund diversion primarily occurred in the context of electric vehicle (EV) purchases intended for leasing to a related party, the risk it creates is neither isolated nor contained.

In September 2022, Gensol Engineering made a preferential issue of 12,81,993 equity shares at ₹1,036.25 per share to investors, including promoter group entities. Among the promoter group entities was ‘Gensol Ventures Pvt Ltd’ (‘Gensol Ventures), which invested ₹10.09 crore in the preferential allotment on September 26, 2022.

Gensol scam: Circular funding to buy preferential shares

But how did this Gensol Ventures get these funds? SEBI traced the source of funds to Anmol Singh Jaggi and Puneet Singh Jaggi. The duo transferred ₹10.07 crore to Gensol Ventures on September 26, 2022, who, in fact, received ₹10 crore from ‘Wellray Solar Industries Pvt Ltd’ (Wellray).

And how did Wellray have these funds? Before September 26, 2022, Wellray’s bank account had close to ₹8.8 lakh (to be exact, ₹8,81,783). Then it received funds amounting to ₹10 crore from Gensol Engineering, SEBI uncovered.

To put it simply, around ₹10 crore went from Gensol Engineering to Wellray to Anmol Singh Jaggi and Puneet Singh Jaggi (as ₹5 crore each) to Gensol Ventures, which went into the account of Gensol Engineering’s preferential issue kitty. All in a day’s work!

Wellray, which then owned preferential shares of Gensol Engineering, went on to predominately trade in it, buying and selling it till December 2024. From November 2022 to December 2024, Wellray brought ₹160.5 crore worth of Gensol Engineering shares and sold ₹178.4 crore worth of Gensol Engineering shares.

In effect, Gensol and its promoters funded Wellray to trade in Gensol—a violation of the restrictions contained in section 67 of the Companies Act, 2013.

Fast forward to 2025, Gensol announced to the exchanges that it received pre-orders for 30,000 of its newly launched electric vehicles unveiled at the Bharat Mobility Global Expo 2025.

However, regulators uncovered that the orders were, in fact, Memorandum of Understandings (MOUs) entered with 9 entities for 29,000 cars—they were just expressions of willingness that had no reference to the price of the vehicle or delivery schedules.

“Therefore, it prima facie appeared that the Company was making misleading disclosures to investors,” SEBI noted.

Gensol scam: Fake solar EV plant

By April 9, 2025, NSE representatives visited the plant site of Gensol Electric Vehicle Pvt Ltd at Chakani in Pune. By this point, to no one’s surprise, no manufacturing activity was found at the plant, which just had about 2-3 labourers. Just to confirm, NSE officials inspected the electricity bills of the unit. The maximum amount billed during the last 12 months came in December 2024, for a total of ₹1,57,037.01 for the month. By then, it was clear that no manufacturing activity was happening in the plant, which stood on leased property.

As more and more details became clear, SEBI uncovered that Wellray acted more as an entity to divert funds from Gensol. Anmol Singh Jaggi and Puneet Singh Jaggi were also directors at Wellray until April 15, 2020.

Between FY2023 and FY2024, Gensol transferred ₹424.14 crore to Wellray, and Wellray transferred ₹310.19 crore to Gensol.

Out of the ₹424.14 crore, Gensol transferred to Wellray, ₹382.84 crore was transferred by Wellray to various “other entities”, of which ₹25.76 crore went to Anmol Singh Jaggi, ₹13.55 crore to Puneet Singh Jaggi, ₹16 crore to Gensol Ventures, and ₹11 crore to a ‘Capbridge Venture LLP’, where the designated Partners were Anmol Singh Jaggi and Puneet Singh Jaggi. Here, ₹10 crore went to Blu-Smart Fleet Pvt Ltd.

Anmol Singh Jaggi took his ₹25.76 crore and put ₹10,63,91,890 of it into Gensol Ventures. Jasminder Kaur, mother of Anmol Singh Jaggi, received ₹6,20,22,500 and his wife Mugdha Kaur Jaggi got ₹2,98,50,000. Moreover, he purchased some foreign currency, United Arab Emirates Dirham (AED) for ₹1,86,35,600, which “appears to be for personal use”, SEBI noted. The rest went into various entities, most of them directly connected to the Jaggis.

Puneet Singh Jaggi followed suit, injecting ₹10,03,31,624 into Gensol Ventures from his ₹13.55 crore. Among the rest, ₹1,13,00,000 went to his spouse, Shalmali Kaur Jaggi and ₹87,52,500 to Jasminder Kaur, his mother. Other funds mostly went into his Amex card, and buying AED, SEBI determined.

In March, credit rating agencies, CARE Rating Limited (CARE) and ICRA Limited (ICRA), both downgraded Gensol. “Certain documents shared by [Gensol] with ICRA, on its debt servicing track record, were apparently falsified, which raises concerns on its corporate governance practices, including its liquidity position,” ICRA added.

SEBI took note of it. Moreover, when news reports regarding loan defaults by BluSmart Mobility Pvt Ltd (BluSmart) became public on February 24, 2025, the ratings agencies doubled down on their review of all connected parties of Gensol. However, Gensol maintained that it was regular in its debt servicing, and that any default by BluSmart had no impact on it.

But the reality was something else. Gensol availed ₹977.75 crore from the Indian Renewable Energy Development Agency Ltd (IREDA) and Power Finance Corporation (PFC) as term loans. Out of this, ₹663.89 crore was for purchasing 6,400 electric vehicles. According to Gensol’s previous disclosures, these EVs procured by the company were subsequently leased to BluSmart, making it a major player as far as loans are concerned.

Gensol scam: Fake loan conduct letters

Gensol also wanted ICRA and CARE to pull down their ratings. In that light, Gensol gave them statements of all lenders except those of IREDA and PFC. For these two lenders, Gensol gave the ratings agencies ‘conduct letters’ which looked like they were issued by IREDA and PFC, both claiming that Gensol was regular in its debt servicing.

SEBI uncovered that these ‘conduct letters’ were never issued by IREDA and PFC. “Upon seeking confirmation from IREDA and PFC regarding the issuance of the Conduct Letters and NOCs, both the lenders categorically denied having issued such letters,” SEBI stated.

Gensol, which took ₹663.89 crore of this loan to buy 6,400 EVs for a total consideration of ₹829.86 crore including 20 per cent of its own margin consideration, only bought 4,704 EVs from Go-Auto Pvt Ltd, its supplier for ₹567.73 crore.

Gensol scam: Rerouting loan to buy DLF flat

This meant that ₹262.13 crore remained unaccounted, SEBI determined. To get to the bottom of this, SEBI checked the bank statements of Gensol and Go-Auto.

“The analysis showed that once the funds were transferred from Gensol to Go-Auto, ostensibly for the purchase of EVs, they were, in most of the instances, either transferred back to the Company itself or routed to entities that were directly or indirectly related to Anmol Singh Jaggi and Puneet Singh Jaggi, promoters and directors of Gensol,” it uncovered. Among them were some familiar names Capbridge Ventures LLP and Wellray Solar Industries Pvt Ltd.

A part of the funds from Capbridge was then routed to buy a high-end apartment in The Camellias, DLF Gurgaon, “in the name of a firm where the MD of Gensol and his brother are designated partners.”

Even the booking amount for the apartment went through some dubious routes. “₹5 crore which was initially paid as booking advance by Jasminder Kaur, mother of Anmol Singh Jaggi, was also sourced from Gensol. Further, it was noted that once DLF returned the advance to Jasminder Kaur, the funds did not go back to the Company but were instead credited to another related party of Gensol viz. Matrix Gas and Renewables Ltd. (Matrix).”

Similarly, the funds that came from Go-Auto to other entities were routed in different ways, with ₹96.69 crore diverted from the listed company finally reaching the private promoter-related entities of Gensol—almost all of them directly or indirectly linked to the Jaggis.

It didn’t just end here. SEBI noted, “₹37.5 crore out of the loan amount of ₹171.30 crore taken by Gensol EV Lease Pvt. Ltd., (a subsidiary of Gensol) from IREDA was ultimately transferred to Anmol Singh Jaggi.”

The 29-page SEBI order on Gensol Engineering says it all. It details the flow of funds from Gensol to each entity and how it reached the Jaggis. As of Friday, two more Gensol independent directors—Harsh Singh and Kuljit Singh Popli— joined Arun Menon in tendering their resignations from the company. 

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