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Journalism of Courage
A luxury apartment in Gurugram’s ultra-exclusive The Camellias – overlooking an expansive golf course – for Rs 43 crore. A premium golf set from US-based TaylorMade, priced at Rs 26 lakh. Hundreds of kilometres away, a mostly deserted manufacturing plant that was supposed to produce tens of thousands of electric vehicles (EVs). And for their mother and spouses, transfers worth over Rs 11 crore.
Findings from the securities market regulator show that this could be one of the biggest recorded frauds in India’s start-up ecosystem, and could taint it for years to come.
In all, brothers Anmol and Puneet Singh Jaggi, promoters of EPC firm Gensol Engineering Ltd and EV cab service BluSmart, diverted Rs 262 crore – loaned by government-owned lending agencies to procure 1,700 electric cars – towards personal indulgences and related-party entities.
These are among startling revelations made by the Securities and Exchange Board of India (Sebi) in an interim order, which alleged that the Jaggi brothers diverted substantial loan amounts through complex transactions for personal use, including the acquisition of luxury real estate, and continuously misled investors. Queries sent to Gensol and Anmol Jaggi did not elicit a response.
Sebi has barred the two from the securities market for financial mismanagement and misuse of funds. The investigation into the Jaggi’s vast network of transactions routed through related-party entities and round-tripping began following a complaint of stock manipulation and fund diversion in June 2024.
Sebi’s April 15 order came amid a steady exit by Gensol’s shareholders from the embattled company. A day later, on Wednesday, Gensol’s share price plummeted 5 per cent to Rs 123, hitting the lower circuit. Over the past month, the stock has crashed 48 per cent – and since the start of 2025, it has plunged 84 per cent.
With Gensol under intense regulatory scrutiny, BluSmart’s future is also uncertain. According to a recent report by The Economic Times, BluSmart is poised to exit its core business and transition into a fleet partner for competitor Uber.
Sometime during the Covid-19 pandemic, Gensol decided to purchase 6,400 electric vehicles (EVs) for Rs 830 crore to lease to BluSmart, a related-party entity. Of the total amount, 80 per cent came as loans from the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC) between 2021-22 and 2023-24. The remaining 20 per cent was to be Gensol’s equity (margin) contribution.
Till February 14, 2025, only 4,704 EVs had been bought for Rs 568 crore, against the 6,400 EVs for which Gensol had secured funding. “Based on these figures, an amount of Rs. 262.13 Crore (Rs. 829.86 Crore – Rs. 567.73 Crore) remains unaccounted, even though more than a year has passed since the Company availed the last tranche of the above mentioned financing,” Sebi said in its order.
Sebi also found that Gensol falsified documents from IREDA and PFC to conceal a loan default – first recorded on December 31, 2024 – from credit rating agencies (CRAs). “The Company however continued to submit statements to the CRAs certifying there was no delay or default in servicing any loans (No Default Statements),” the order said.
A complex web to divert funds
The Jaggis used New Delhi-based EV supplier GoAuto to route Rs 50 crore from the loan to Capbridge Ventures LLP, which purchased The Camellias apartment on behalf of their mother.
“It can be noted from the above that funds availed by Gensol as loans for procuring EVs were, through layered transactions, partly utilised for buying 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,” the order said.
“Presently, almost the entire shareholding (99%) of Wellray is held by Lalit Solanki, who was employed as Regulatory Affairs Manager at the Gensol Group until December 2018, as per information available on LinkedIn,” the order said.
Where the money went
Through additional complex transactions, Wellray also transferred Rs 39 crore to the Jaggi brothers – with Rs 26 crore going to Anmol and Rs 13 crore to Puneet.
From the Rs 26 crore received from Wellray, funds were diverted by Anmol Jaggi to Ashneer Grover’s Third Unicorn Pvt Ltd (Rs 50 lakh) and to BatX Energies Pvt Ltd (Rs 1.35 crore), a lithium-ion battery recycler based in Gurugram. Jaggi became a shareholder in both companies in March 2024.
Some other notable payments made by Anmol Jaggi for personal use include:
Misleading disclosures
Based on its investigation, Sebi also found that Gensol misled investors by claiming it had received pre-orders for 30,000 of its newly launched EVs at the Bharat Mobility Global Expo in January.
“However, when relevant documents were called for from the Company and examined it was noted that the Orders in question were Memorandum of Understandings (MOUs) entered with 9 entities for 29,000 cars. The MOUs were in the nature of an expression of willingness with no reference to the price of the vehicle or delivery schedules,” the Sebi order said.
A visit to its plant in Pune by the National Stock Exchange (NSE) revealed that “there was no manufacturing activity at the plant with only 2-3 labourers present there”.
