The CBI has registered a case against Gensol Engineering and BluSmart founders Anmol Singh Jaggi and Puneet Singh Jaggi. IREDA alleges a loss of over Rs 672 crore due to loan diversion and forged documents. The move raises serious concerns about corporate governance and institutional creditworthiness.
The Central Bureau of Investigation (CBI) has registered a formal case against Gensol Engineering Ltd, its subsidiary Gensol EV Lease Ltd, and the founders of BluSmart EV, Anmol Singh Jaggi and Puneet Singh Jaggi. The action follows a complaint by the Indian Renewable Energy Development Agency (IREDA), which alleges a financial loss exceeding Rs 672 crore caused by the misappropriation of funds and the submission of forged documentation.
According to the official complaint, the accused companies received loans from IREDA specifically for procuring electric vehicles for BluSmart’s ride-hailing operations. IREDA alleges that these funds were diverted to related entities or used for purposes other than those sanctioned. The agency claims a loss of Rs 453.77 crore from Gensol Engineering and Rs 218.97 crore from Gensol EV Lease, which does not include the interest and other charges that have accrued.
The investigation marks a significant escalation in regulatory scrutiny for the group. IREDA has reportedly classified these loan accounts as fraud and reported them to the Reserve Bank of India (RBI). Furthermore, the agency alleges that the borrowers provided forged documents to credit rating agencies to misrepresent the status of their loans and the rating process, actions that have drawn the attention of investigative authorities.
This development brings the role of other lenders under the scanner as well. The FIR highlights that 15 banks and financial institutions, including major lenders like Power Finance Corporation, Canara Bank, IDFC Bank, and ICICI Bank, had also extended credit to Gensol Engineering. With the loan accounts being declared fraudulent by the primary lender, the recovery of these dues and the overall financial stability of the borrower face extreme uncertainty.
Investors and stakeholders have witnessed multiple regulatory red flags surrounding the group over the past year. Gensol Engineering and its promoters have been subject to investigations by the Securities and Exchange Board of India (SEBI) and the Enforcement Directorate (ED) since 2025. In previous actions, SEBI had barred the founders from participating in market activities due to governance concerns. IREDA has already maintained significant provisioning against these exposures, signaling the severity of the financial stress.
With IREDA initiating insolvency and bankruptcy proceedings to recover dues, the future operations and capital structure of the companies remain under severe pressure. The key monitorable for the market will be the progress of the CBI investigation and the ongoing legal battles regarding debt recovery, which will determine the extent of the asset impairment for all involved lenders.