ED detains BluSmart co-founder Puneet Jaggi in FEMA case

New Delhi, April 25 The Enforcement Directorate (ED) has detained BluSmart co-founder Puneet Jaggi from a Delhi hotel, after the agency conducted raids in a case related to Gensol Engineering Ltd.

The raids were conducted at company’s offices in Delhi, Gurugram, and Ahmedabad under the Foreign Exchange Management Act (FEMA).

The ED is investigating Gensol promoter brothers Anmol Singh Jaggi and Puneet Singh Jaggi after a SEBI report accused them of financial irregularities, corporate misgovernance and fund diversion.

Gensol was yet to issue a statement.

Earlier, government-owned Power Finance Corporation Ltd (PFC) filed a complaint with the Delhi police against Jaggi brothers-promoted Gensol Engineering Ltd for allegedly filing false documents to take loans for buying electric vehicles (EVs).

“PFC has filed a complaint with the Economic Offences Wing of the Delhi police concerning the issuance of falsified documents. PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations,” the public sector financial company said in a statement.

Gensol, the parent company of all-electric vehicle (EV) app BluSmart which was providing green cab services, allegedly forged letters from its two lenders -- PFC and Indian Renewable Energy Development Agency Ltd (IREDA) -- to show that it was servicing its debt regularly. However, the claim was exposed when the credit rating agencies began verifying the letters with the lenders.

The public sector undertaking said it is also examining the matter internally under its anti-fraud policy. The investigation will focus on tracking missing delivery receipts for EVs financed by the PFC.

Gensol had taken loans to the tune of Rs 978 crore from PFC and Renewable Energy Development Agency (IREDA) to buy electric vehicles for running an online green taxi service which had become quite popular in Delhi NCR and Bengaluru.

A SEBI investigation also revealed that Gensol has not been able to account for Rs 262.13 crore of the amount.

On April 15, 2025, SEBI released a detailed interim order showing what went wrong at Gensol. The order said the promoters of Gensol, including Anmol and Puneet Singh Jaggi, had treated the company like their personal 'piggy bank'. There were no proper financial controls in place, and the promoters had diverted loan money to themselves or related entities.

Gensol had secured loans amounting to Rs 977.75 crore from IREDA and PFC between FY22 and FY24. Of this, Rs 663.89 crore was specifically meant for the purchase of 6,400 EVs. However, the company admitted to buying only 4,704 vehicles, worth Rs 567.73 crore, as verified by supplier Go-Auto.

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