The Enforcement Directorate (ED) on Thursday detained Puneet Singh Jaggi, co-promoter of Gensol Engineering Ltd, from a hotel in Delhi and conducted raids across Delhi, Gurugram, and Ahmedabad. The crackdown comes under the Foreign Exchange Management Act (FEMA) following allegations of financial misconduct, corporate misgovernance, and fund diversion flagged by the Securities and Exchange Board of India (SEBI).
Official sources said Puneet Jaggi was taken into custody while his brother and fellow co-promoter Anmol Singh Jaggi is reportedly in Dubai. The ED also visited their luxury residences in The Camellias, DLF Gurugram, and another location in Ahmedabad. Their wives were traced to Pune, Maharashtra.
The ED action follows an interim SEBI order which alleged that the Jaggi brothers misused corporate funds from Gensol Engineering for personal gains. According to SEBI, the funds—borrowed from Indian Renewable Energy Development Agency (IREDA) and Power Finance Corporation (PFC) for EV procurement and EPC contracts—were diverted to acquire foreign assets, pay personal expenses, and benefit shell companies and relatives.
Notably, Gensol’s sister firm BluSmart Mobility, known for its electric cab services in Delhi-NCR, Mumbai, and Bengaluru, has suspended new bookings since the SEBI report emerged. SEBI has also barred the Jaggi brothers from accessing the securities market until further notice.
The ED is expected to file a money laundering case against the promoters once Delhi Police’s Economic Offences Wing (EOW) registers an FIR based on complaints from IREDA and PFC. Investigators are also probing the role of Ajay Aggarwal of Go Auto Pvt Ltd, a Tata e-vehicle distributor, for allegedly assisting in the diversion of funds.
SEBI’s findings claim that Gensol promoters treated the listed firm like a personal entity—funding luxury purchases, paying off personal credit cards, and transferring funds to related parties. Such practices, regulators warn, could eventually translate into heavy losses for the company’s investors.
Gensol Engineering, listed on both BSE and NSE, is involved in solar consulting, EPC services, and electric vehicle leasing. The company has yet to respond to the allegations.