Gensol Engineering Ltd. is under a government probe after the Securities and Exchange Board of India (SEBI) uncovered alleged misuse of Rs 975 crore in loans that were meant to fund electric vehicle (EV) projects. These funds were originally granted by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC), primarily to support BluSmart, an EV-based ride-hailing service co-founded by Gensol’s promoters Anmol Singh Jaggi and Puneet Singh Jaggi.
According to SEBI’s interim findings, a large portion of the funds was diverted to entities linked to the promoters, and some of it ended up in personal accounts. The regulator revealed that Gensol’s promoters allegedly used the money for personal luxury expenses such as purchasing a high-end apartment, buying golf equipment, spa treatments, and even clearing personal credit card bills. Further inspection revealed that a key manufacturing plant in Pune, which was projected as part of Gensol’s EV growth plans, showed no evidence of actual production activities.
In response to these discoveries, SEBI has barred Anmol and Puneet Singh Jaggi from holding top positions at Gensol or participating in the stock market until further notice. The company’s stock price has taken a significant hit, dropping nearly 75%, and its credit rating was downgraded by both ICRA and CARE due to concerns over liquidity and corporate governance. Following the developments, three independent directors of Gensol resigned, citing governance concerns. BluSmart has also temporarily suspended operations on its app, and several top executives, including the CEO and CTO, have reportedly stepped down.
While Gensol denies involvement in any financial wrongdoing, the company has acknowledged a short-term liquidity mismatch and has formed a review committee to look into the allegations. To address its financial troubles, Gensol is planning to sell nearly 3,000 electric vehicles and a subsidiary company in a bid to reduce its debt by Rs 665 crore.
This case has triggered fresh concerns around fund allocation, transparency, and corporate governance in India’s fast-growing EV sector, and could have long-term implications for how clean energy funds are monitored and utilized in the future.
