Ride-hailing service BluSmart has suspended its services in many cities after the Securities and Exchange Board of India (SEBI) said promoters Anmol Singh Jaggi and Puneet Singh Jaggi diverted funds meant for buying electric vehicles (EVS) towards purchasing a luxury apartment in Gurugram. The apartment is located in DLF’s upscale residential project, The Camellias, news agency PTI reported.
The regulatory body also restrained the duo from participating in the securities market until further notice, as per news agency Reuters.
What SEBI said?
The Securities and Exchange Board of India (SEBI), in an interim order issued on April 15, has accused Gensol Engineering Limited (GEL) promoters Anmol Singh Jaggi and Puneet Singh Jaggi of diverting funds meant for electric vehicle (EV) procurement towards purchasing a luxury apartment in Gurugram. The apartment is located in DLF’s upscale residential project, The Camellias, news agency PTI reported.
As part of its action, SEBI has barred both founders from participating in the securities market until further notice.
The Gensol connection
According to the market regulator, Gensol had borrowed funds to procure EVS for its ride-hailing partner BluSmart. However, investigations revealed that these funds were routed through a network of entities and partially used for personal enrichment.
“Funds availed by Gensol as loans for procuring EVS were, through layered transactions, partly utilised for buying a high-end apartment in The Camellias, Gurugram, in the name of a firm where the MD of Gensol and his brother are designated partners,” SEBI said in its order.
The regulator further noted that a Rs 5 crore advance initially paid to DLF by Jasminder Kaur, mother of Anmol Singh Jaggi, also originated from Gensol. When DLF later returned the advance, the funds were not redirected to Gensol but instead transferred to another related party.
Between 2021 and 2024, Gensol reportedly took loans amounting to Rs 978 crore from public sector lenders- the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC). Of this, Rs 664 crore was allocated for procuring 6,400 EVS to be leased to BluSmart.
However, in a regulatory filing in February 2025, Gensol disclosed it had acquired only 4,704 EVS. Go-Auto, the company’s EV supplier, corroborated this and pegged the cost of the vehicles at Rs 568 crore-leaving an unexplained gap of approximately Rs 262 crore.
SEBI’s investigation further revealed that some of the loan amount was transferred to Capbridge, a related entity, which in turn paid Rs 42.94 crore to DLF towards the apartment purchase. DLF has confirmed that the property is registered in the name of a firm where both Jaggi brothers are designated partners.
Following the revelations, Gensol Engineering’s shares plunged 5 per cent on the National Stock Exchange (NSE) on Wednesday, hitting the lower circuit limit at Rs 122.68.
All About BluSmart
Meanwhile, BluSmart Mobility, the EV-based ride-hailing startup linked to the Jaggis, is reportedly facing financial issues. According to media reports, the company has delayed salary payments for March. In an internal email to employees, co-founder Anmol Singh Jaggi assured that all dues would be cleared by the end of April, the IANS reported.
“Due to current cash flow constraints, there will be a short delay in processing salaries. However, we want to assure you that all dues will be cleared within April itself,” the email reportedly stated.