ED Detains BluSmart Co-Founder Puneet Jaggi in Gensol Group Financial Misconduct Probe

New Delhi, April 25, 2025 — The Enforcement Directorate (ED) has detained Puneet Singh Jaggi, co-founder of BluSmart Mobility, in connection with an ongoing investigation into alleged financial irregularities involving Gensol Engineering Ltd, a company promoted by Puneet and his brother Anmol Singh Jaggi.

The action follows a damning order by the Securities and Exchange Board of India (SEBI), which accuses the Gensol Group of misusing loans worth crores obtained from state-run financial institutions Power Finance Corporation (PFC) and IREDA, meant for electric vehicle (EV) acquisition and EPC contracts.

SEBI’s Allegations: Diversion of Public Funds

According to the SEBI report, Gensol Engineering allegedly diverted funds to purchase luxury assets—including a premium apartment in The Camellias, DLF Gurugram—and personal items such as high-end golf equipment and credit card payments. The promoters are accused of treating the publicly listed firm as a proprietary entity, funneling funds to relatives and shell entities, some of which are based in Dubai and the United States.

Nationwide Raids, International Trail

The ED executed raids at the group’s offices in Delhi, Gurugram, and Ahmedabad under the Foreign Exchange Management Act (FEMA). Puneet Jaggi was detained from a hotel in Delhi, while his brother Anmol Singh Jaggi is reportedly in Dubai. The agency also visited properties in Pune and Gurugram and plans to file a money laundering case following a formal complaint by PFC and IREDA.

Further investigations revealed that Go Auto Pvt Ltd, a Tata EV distributor led by Ajay Aggarwal, may have assisted Gensol in channeling funds away from their stated purpose.

Impact on BluSmart Operations

The controversy has already impacted BluSmart Mobility, an electric cab service operating in Delhi-NCR, Bengaluru, and Mumbai. The company has suspended bookings in Bengaluru amid the escalating legal scrutiny. Meanwhile, SEBI has barred the Jaggi brothers from accessing the securities market until further notice.

BluSmart has not yet issued an official response, and PTI reports that communication from Gensol has also been withheld.

What’s Next?

The ED is awaiting an FIR from the Delhi Police Economic Offences Wing (EOW) before formally registering a money laundering case. If proven, these charges could have far-reaching implications for corporate governance standards in India’s EV and renewable energy sectors.