A luxurious residence 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. Lots of of kilometres away, a principally abandoned manufacturing plant that was supposed to supply tens of 1000’s of electrical autos (EVs). And for his or her mom and spouses, transfers value over Rs 11 crore.
Findings from the securities market regulator present that this could possibly be one of many greatest recorded frauds in India’s start-up ecosystem, and will taint it for years to come back.
In all, brothers Anmol and Puneet Singh Jaggi, promoters of EPC agency Gensol Engineering Ltd and EV cab service BluSmart, diverted Rs 262 crore – loaned by government-owned lending companies to obtain 1,700 electrical vehicles – in the direction of private indulgences and related-party entities.
These are amongst startling revelations made by the Securities and Trade Board of India (Sebi) in an interim order, which alleged that the Jaggi brothers diverted substantial mortgage quantities via advanced transactions for private use, together with the acquisition of luxurious actual property, and constantly misled traders. Queries despatched to Gensol and Anmol Jaggi didn’t elicit a response.
Sebi has barred the 2 from the securities marketplace for monetary mismanagement and misuse of funds. The investigation into the Jaggi’s huge community of transactions routed via related-party entities and round-tripping started following a criticism of inventory manipulation and fund diversion in June 2024.
Sebi’s April 15 order got here amid a gradual exit by Gensol’s shareholders from the embattled firm. A day later, on Wednesday, Gensol’s share value plummeted 5 per cent to Rs 123, hitting the decrease circuit. Over the previous month, the inventory has crashed 48 per cent – and because the begin of 2025, it has plunged 84 per cent.
With Gensol below intense regulatory scrutiny, BluSmart’s future can be unsure. In accordance with a latest report by The Financial Instances, BluSmart is poised to exit its core enterprise and transition right into a fleet companion for competitor Uber.
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Falsifying paperwork and data
Someday throughout the Covid-19 pandemic, Gensol determined to buy 6,400 electrical autos (EVs) for Rs 830 crore to lease to BluSmart, a related-party entity. Of the full quantity, 80 per cent got here as loans from the Indian Renewable Power Growth Company (IREDA) and the Energy Finance Company (PFC) between 2021-22 and 2023-24. The remaining 20 per cent was to be Gensol’s fairness (margin) contribution.
Until February 14, 2025, solely 4,704 EVs had been purchased for Rs 568 crore, in opposition to the 6,400 EVs for which Gensol had secured funding. “Based mostly on these figures, an quantity of Rs. 262.13 Crore (Rs. 829.86 Crore – Rs. 567.73 Crore) stays unaccounted, despite the fact that greater than a yr has handed because the Firm availed the final tranche of the above talked about financing,” Sebi mentioned in its order.
Sebi additionally discovered that Gensol falsified paperwork from IREDA and PFC to hide a mortgage default – first recorded on December 31, 2024 – from credit standing companies (CRAs). “The Firm nonetheless continued to submit statements to the CRAs certifying there was no delay or default in servicing any loans (No Default Statements),” the order mentioned.
A posh net to divert funds
The Jaggis used New Delhi-based EV provider GoAuto to route Rs 50 crore from the mortgage to Capbridge Ventures LLP, which bought The Camellias residence on behalf of their mom.
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The brothers additional routed Rs 40 crore via GoAuto to Wellray Photo voltaic Industries, a related-party entity, which subsequently transferred the funds to 4 different corporations.
“It may be famous from the above that funds availed by Gensol as loans for procuring EVs have been, via layered transactions, partly utilised for purchasing a high-end residence in The Camellias, DLF Gurgaon, within the title of a agency the place the MD of Gensol and his brother are designated companions,” the order mentioned.
“Presently, virtually the complete shareholding (99%) of Wellray is held by Lalit Solanki, who was employed as Regulatory Affairs Supervisor on the Gensol Group till December 2018, as per info accessible on LinkedIn,” the order mentioned.
The place the cash went
By way of extra advanced transactions, Wellray additionally 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 obtained from Wellray, funds have been 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 primarily based in Gurugram. Jaggi grew to become a shareholder in each corporations in March 2024.
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Another notable funds made by Anmol Jaggi for private use embody:
- Rs 26 lakh to purchase a golf set from TaylorMade
- Rs 6.2 crore despatched to mom Jasminder Kaur
- Rs 2.99 crore to spouse Mugdha Kaur Jaggi
- Rs 1.86 crore to purchase overseas foreign money
- Rs 17.28 lakh to Titan Firm for private use
- Rs 11.75 lakh to DLF Houses for private use
- Rs 3 lakh to Make My Journey for private use
Deceptive disclosures
Based mostly on its investigation, Sebi additionally discovered that Gensol misled traders by claiming it had obtained pre-orders for 30,000 of its newly launched EVs on the Bharat Mobility World Expo in January.
“Nonetheless, when related paperwork have been referred to as for from the Firm and examined it was famous that the Orders in query have been Memorandum of Understandings (MOUs) entered with 9 entities for 29,000 vehicles. The MOUs have been within the nature of an expression of willingness with no reference to the worth of the car or supply schedules,” the Sebi order mentioned.
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A go to to its plant in Pune by the Nationwide Inventory Trade (NSE) revealed that “there was no manufacturing exercise on the plant with solely 2-3 labourers current there”.