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Gensol Fund Fraud: Jaggi brothers are accused of siphoning off loan funds meant for the company, misleading investors, lenders, and regulators.
Jaggi brothers resigns from Gensol Engineering board amid SEBI fund fraud probe.
Gensol Fraud Scandal: Anmol Jaggi and Puneet Jaggi, managing directors at Gensol Engineering, resigned from their positions following a SEBI directive prohibiting them from holding any key position in listed companies. The Jaggi brothers were accused of misappropriating company funds for personal luxuries. In its filing, Gensol Engineering also announced that the brothers would no longer be part of various company committees.
Cascading Of Gensol Stocks
Since the unfolding of the saga by SEBI, the stocks of Gensol Engineering took a hit, coming down 60 per cent in the past one month. In 2025, the stocks fell about 93 per cent from over Rs 720 apiece to below Rs 60 apiece. The scrip has been witnessing constant lower circuits for the past few weeks.
On Tuesday, the trading halted after stocks hit the lower circuit of 5 per cent to Rs 51.25 apiece in the opening session.
The fund misappropriation by Jaggi brothers led to the direct impact of its EV cab service venture BluSmart whose businesses have been suspended since SEBI’s highlight the fund diversion issue by the promoters.
Gensol Fund Fraud Scandal And Suspension Of BlueSmart
Earlier, Sebi had barred the company’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market due to allegations of misusing public company funds for personal gain.
The promoters are accused of siphoning off loan funds meant for the company, misleading investors, lenders, and regulators. The interim order not only restricts them from accessing capital markets but also prevents them from holding key positions in any listed company for the time being.
At the end of March, BluSmart experienced significant leadership changes, with the CEO, Chief Business Officer, Chief Technology Officer, and Vice-President of Experience all resigning. Although officially attributed to corporate restructuring, the timing and scale of these departures raised concerns.
It is the alleged misuse of nearly Rs 262 crore from the Rs 978 crore loaned to Gensol by the Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC). The funds were intended for acquiring 6,400 EVs for leasing to BluSmart, but only 4,704 vehicles were purchased. Sebi’s findings suggest that a portion of the funds was redirected to personal luxuries, such as high-end real estate, foreign travel, golf equipment, and other personal expenses.
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