ED Detains BluSmart Co-Founder Puneet Jaggi in Foreign Exchange Violation Case

New Delhi(The Uttam Hindu): The Enforcement Directorate (ED) has detained Puneet Jaggi, co-founder of BluSmart, from a hotel in Delhi following raids conducted in connection with a case involving Gensol Engineering Ltd. The agency carried out searches at the company’s offices in Delhi, Gurugram, and Ahmedabad under the provisions of the Foreign Exchange Management Act (FEMA). The investigation is focused on Gensol’s promoters, brothers Anmol Singh Jaggi and Puneet Singh Jaggi, after a SEBI report alleged financial misconduct, corporate misgovernance, and diversion of funds.

Gensol has not yet released an official statement. Previously, Power Finance Corporation Ltd (PFC), a government-owned entity, lodged a complaint with the Delhi Police’s Economic Offences Wing, accusing Gensol Engineering Ltd of submitting falsified documents to secure loans for electric vehicle (EV) purchases. In its statement, PFC confirmed the filing of the complaint and reiterated its commitment to transparency and the protection of its financial interests, stating that the matter concerns the issuance of forged documents.

Gensol, which is the parent company of EV ride-hailing platform BluSmart, allegedly fabricated letters from lenders PFC and Indian Renewable Energy Development Agency Ltd (IREDA) to falsely claim that it was regularly servicing its loans. This was uncovered during verification checks conducted by credit rating agencies. PFC further stated that it is conducting an internal investigation in line with its anti-fraud policy, focusing on locating missing delivery receipts for EVs financed under the loan scheme.

Between FY22 and FY24, Gensol secured loans totaling Rs 977.75 crore from IREDA and PFC, with Rs 663.89 crore specifically allocated for the procurement of 6,400 EVs. However, the company later admitted to purchasing only 4,704 EVs, worth Rs 567.73 crore, as confirmed by supplier Go-Auto. A SEBI probe has also found that Gensol failed to account for Rs 262.13 crore of the sanctioned amount. In an interim order issued on April 15, 2025, SEBI stated that the promoters treated Gensol as their personal "piggy bank," with inadequate financial controls and misuse of loan funds for personal or related party benefit.