SEBI Strips Jaggi Brothers of Gensol Directorship, Banned from Market
Mr. Anmol Singh Jaggi and Mr. Puneet Singh Jaggi, promotors of Gensol Engineering Ltd. (GEL) and founders of BluSmart Mobility, have been issued an interim order by Securities and Exchange Board of India (SEBI), dated 15th April 2025, in connection with alleged diversion of funds. The Jaggi brothers have been stripped off their directorship in GEL by SEBI, and have been barred from ‘buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever’ until further notice.
SEBI’s Investigation and its Findings
SEBI’s stringent order follows its investigation, which was prompted by a complaint received by SEBI in June 2024 which suggested that Gensol Engineering Ltd’s MD, Mr. Anmol Jaggi, along with his brother Puneet Jaggi were using Gensol Engineering’s funds for their personal expenditures. SEBI’s investigation has affirmed this claim.
Gensol’s Poor Debt Track Record, Falsified Documents – ICRA Rating Downgraded
SEBI’s investigation report also noted that ICRA had downgraded its credit rating for GEL to [ICRA] D from [ICRA] BBB- in March 2025, on account of delays in debt repayment. Moreover, GEL had submitted falsified documents regarding its debt repayment track record, as per ICRA.
SEBI, in its order, attached No-Objection-Certificates (NOCs) from IREDA and PFC in connection to debt taken by GEL from them between FY-22 and FY-24. These NOCs were submitted by GEL to Credit Rating Agencies and stated that the company owes no dues to IREDA and PFC. The market regulator confirmed that these NOCs were indeed forged, and that neither IREDA nor PFC ever issued them to Gensol Engineering.
Loan Taken to Purchase EVs Diverted for Personal Expenses
During FY-22 to FY-24, the Gensol Engineering had availed Rs. 977.75 crore of term loans from IREDA and PFC, out of which a part was for the purchase of 6,400 EVs. These EVs were to be leased to BluSmart Mobility. However, instead of this number, only 4,704 EVs were purchased using this debt, as affirmed by Gensol on 14th February 2025.
As per SEBI’s report, Rs. 262.13 crore out of this debt amount remains unaccounted for thus far. The last tranche of this loan was received by the company over a year ago. This amount was funnelled back to the promoters through a web of multiple transactions among entities which are all connected to GEL promoters.
SEBI’s investigation also revealed that a part of debt taken by GEL for purchase of EVs was spent through layered transactions to purchase a luxury apartment at The Camellias, DLF Gurgaon. The purchase was made in the name of a firm, namely Capbridge Ventures LLP, in which the Jaggi brothers are designated partners.
Apart from this, the report mentioned that the unaccounted for debt amount secured by GEL was used by the promoters for their own benefit and some amount was also transferred to their close relatives.
Gensol Engineering’s Funds Used as Promoters’ “Piggybank” – SEBI
“The Company’s funds were routed to related parties and used for unconnected expenses, as if the Company’s funds were promoters’ piggybank”, observed SEBI’s order. The order added “What has been witnessed in the present matter is a complete breakdown of internal controls and corporate governance norms in Gensol, a listed company. The promoters were running a listed public company as if it were a proprietary firm”.
Gensol’s Response to SEBI’s Order
In response to SEBI’s order, the Jaggi brothers have stepped down as directors of Gensol Engineering and have exited from their involvement in the management of the company. Gensol’s stock filing dated 16th April 2025 also said that the company will “…fully cooperate with the forensic audit to be conducted at the behest of SEBI”. The forensic auditor, to be appointed by SEBI, will be given access to GEL and its related companies’ company books.
BluSmart Halts Services
BluSmart, which offers electric cab rides in cities such as Delhi, Bengaluru and Mumbai, has halted its operations after SEBI’s aforementioned order was issued. The company has a fleet of 8,500 EVs, and has a network of about 5,800 EV chargers in Delhi NCR and Bengaluru. BluSmart supports about 10,000 drivers.
However, BluSmart has been allegedly having internal issues, which can be linked to GEL’s failure to repay its debts on time. Media reports mention that BluSmart’s salary payments were delayed for the month of March, for which Mr. Anmol Singh Jaggi had cited cash flow constraints.