On April 24, 2025, the Enforcement Directorate (ED) detained Puneet Singh Jaggi, co-founder of electric cab service BluSmart, from a New Delhi hotel, escalating a high-profile investigation into alleged financial irregularities at Gensol Engineering Ltd, a company he co-founded with his brother, Anmol Singh Jaggi. The detention follows ED raids at Gensol’s offices in Delhi, Gurugram, and Ahmedabad under the Foreign Exchange Management Act (FEMA), triggered by a Securities and Exchange Board of India (SEBI) report accusing the Jaggi brothers of fund diversion and corporate misgovernance.
SEBI’s April 15 interim order revealed that Gensol, which secured ₹977.75 crore in loans from Power Finance Corporation (PFC) and IREDA for electric vehicle procurement, allegedly diverted funds to personal assets, including a ₹70 crore DLF Camellias apartment and a ₹26 lakh golf set. The report claims ₹262.13 crore remains unaccounted for, with funds funneled through shell entities and related parties. PFC has filed a complaint with Delhi Police’s Economic Offences Wing, alleging falsified documents, while the ED is reportedly preparing a money laundering case under the Prevention of Money Laundering Act (PMLA).
Puneet Jaggi, who had been staying at the Delhi hotel for a week, faces scrutiny alongside Anmol Jaggi, who is reportedly in Dubai. The ED has also traced the brothers’ wives in Pune for potential questioning. The fallout has severely impacted BluSmart, which suspended operations in Delhi-NCR, Bengaluru, and Mumbai, notifying users of temporary booking closures and potential refunds if services don’t resume within 90 days. SEBI has barred the Jaggi brothers from the securities market and directorial roles at Gensol.
The scandal has drawn attention to governance challenges in India’s startup ecosystem, with BluSmart’s valuation plummeting as Eversource explores a ₹800–1,000 crore acquisition, far below its $300 million peak. As investigations deepen, the future of Gensol and BluSmart hangs in the balance, raising questions about financial transparency in the EV sector.
Add Business Connect magazine to your Google News feed
