New Delhi: The Enforcement Directorate (ED) launched a series of raids on BlueSmart and Gensol Engineering Limited on April 24, targeting the company’s offices in Delhi, Gurugram, and Ahmedabad. The operation, conducted under the provisions of the Foreign Exchange Management Act (FEMA), resulted in the detention of Puneet Singh Jaggi, a co-promoter of Gensol Engineering, from a Delhi hotel.
The raids stem from a Securities and Exchange Board of India (SEBI) report accusing the Jaggi brothers, Anmol Singh Jaggi and Puneet Singh Jaggi, of financial misconduct, corporate misgovernance, and the alleged diversion of funds.
BluSmart, an Indian electric vehicle (EV) taxi startup, was initially praised for its eco-friendly approach and attracting investments from prominent figures, including MS Dhoni and Deepika Padukone. The companys parent firm, Gensol Engineering, is now facing a SEBI investigation.
The investigation alleges misuse of approximately Rs 262 crore from a Rs 978 crore loan obtained from public sector institutions. The misused funds were allegedly used for luxury purchases such as a high-end apartment in Gurugram, foreign travel, and golf equipment, as well as being transferred to the families of the Jaggi brothers, Anmol and Puneet Singh Jaggi, who founded the company.
SEBI’s interim order restricts the Jaggis from accessing capital markets and holding key positions in listed companies. The scandal has left BluSmart’s operations in disarray, with stranded vehicles and concerned employees.
Further investigations are ongoing, with the ED expected to file a money laundering case once the Delhi Police Economic Offences Wing files a First Information Report (FIR) based on a complaint lodged by creditors IREDA and Power Finance Corporation. The wives of the Jaggi brothers were also reportedly traced to Pune.
