Gensol had borrowed Rs 977.75 crore from IREDA and Power Finance Corporation (PFC), of which Rs 663.89 crore was earmarked for purchasing electric vehicles for BluSmart, a ride-hailing platform co-founded by Gensol’s Anmol Singh Jaggi.
In April, both lenders filed complaints with the Economic Offences Wing, alleging that Gensol falsified documents related to debt servicing. The Enforcement Directorate later raided the company’s premises, seizing documents and electronic devices, while SEBI ordered a forensic audit.
On Tuesday, Anmol and his brother Puneet Singh Jaggi resigned as directors of Gensol, a month after SEBI barred them from holding key managerial positions. The regulator’s interim order alleges that the brothers diverted company funds towards personal luxury purchases and defaulted on loans, including those intended for BluSmart’s EV fleet.
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According to SEBI, the Rs 978 crore term loan sanctioned jointly by IREDA and PFC was meant to finance 6,400 electric vehicles for BluSmart Mobility. However, only 4,700 vehicles—costing Rs 567 crore—were delivered, leaving Rs 262 crore unaccounted for. SEBI says the surplus funds were routed into unrelated transactions, including luxury real estate and payments to entities linked to the promoters.
Gensol’s stock has plunged over 93% in the past year and 55% in the last month alone. However, in the past two trading sessions, the stock hit the 5% upper circuit.
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