ED Detains Gensol Engineering Co-Promoter Puneet Jaggi Amid Financial Misconduct Probe

The Enforcement Directorate (ED) on Thursday detained Puneet Singh Jaggi, co-promoter of Gensol Engineering Ltd, from a hotel in Delhi as part of a sweeping crackdown under the Foreign Exchange Management Act (FEMA).

Simultaneously, the agency conducted search and seizure operations across Delhi, Gurugram, and Ahmedabad, following explosive allegations of financial misconduct, corporate misgovernance, and fund diversion brought to light by the Securities and Exchange Board of India (SEBI).

The investigation centers around the Jaggi brothers—Puneet Singh Jaggi and Anmol Singh Jaggi, co-promoters of Gensol. While Puneet is now in ED custody, Anmol is reportedly based in Dubai.

The ED teams also visited their upscale residences in The Camellias, DLF Gurugram, and another prime location in Ahmedabad. Meanwhile, their wives were traced to Pune, Maharashtra, as per news reports.

SEBI Alleges Diversion of Renewable Energy Loans for Personal Lavish Expenditures

The ED’s action stems from an interim SEBI order that alleges serious corporate wrongdoing by the Jaggi brothers.

According to the market regulator, loans sanctioned to Gensol Engineering by Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC)—earmarked for electric vehicle (EV) procurement and EPC (engineering, procurement, and construction) contracts—were diverted.

Instead of being used for their intended renewable energy purposes, SEBI claims the funds were channelled toward the purchase of foreign assets, personal luxury expenses, and financial support to shell companies and relatives. It was also alleged that the promoters used corporate accounts to pay off personal credit card bills, fund luxury acquisitions, and transfer money to related parties, effectively treating the publicly listed company as a personal financial vehicle.

BluSmart Mobility Halts Bookings

The fallout has already begun to affect Gensol’s affiliate, BluSmart Mobility, known for its electric cab services in Delhi-NCR, Mumbai, and Bengaluru.

The company has suspended new bookings in the wake of the SEBI revelations. Meanwhile, the regulatory body has barred both Puneet and Anmol Jaggi from accessing the securities market until further notice.

Sources say the ED is preparing to file a money laundering case against the Jaggi brothers once the Delhi Police’s Economic Offences Wing (EOW) registers a formal FIR based on complaints lodged by IREDA and PFC.

Investigators are also examining the possible role of Ajay Aggarwal, associated with Go Auto Pvt Ltd, a known distributor of Tata electric vehicles. Aggarwal is suspected of facilitating fund diversion in collaboration with the Gensol promoters.

Stock Performance 

On April 24, 2025, Gensol Engineering share price ended 4.96% lower at ₹95.80.Gensol Engineering share price reached a 52-week high of ₹1,125.75 and a 52-week low of ₹95.80. As per BSE, the total traded volume for the stock stood at 0.17 lakh shares with a turnover of ₹15.81 lakhs.

According to exchange data, Gensol Engineering shares are trading at a price-to-earnings (P/E) ratio of 2.86x, based on its trailing 12-month earnings per share (EPS) of ₹33.46, and a price-to-book (P/B) ratio of 0.57.

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