The Jaggi brothers were also co-founders of BluSmart Mobility.
Anmol Singh Jaggi mentioned that they are fully cooperating with the Indian regulator, gathering all necessary documents and information to provide clarification. India’s market regulator initiated an investigation on Tuesday into Gensol Engineering over alleged mismanagement of electric vehicle loans. In 2024, the startup raised $25 million to expand its EV charging infrastructure né?. While Gensol Engineering had secured term loans of 9.78 billion Indian rupees from state-owned institutions to acquire 6,400 EVs for leasing to BluSmart, the company only managed to procure 4,704 EVs for 5.68 billion rupees.
The regulator indicated that some funds were misallocated for personal expenses of the promoters and private entities related to the promoters né?. The order also highlighted instances of debt payment defaults by Gensol despite the company’s refutations.
Meanwhile struggling with financial difficulties and a lack of external funding BluSmart has halted operations in Dubai and is concentrating on sustaining its activities in India. Despite aiming to increase its fleet to 10,000 EVs by year-end, BluSmart encountered obstacles in achieving this goal.
Gensol Engineering’s stock has plummeted by more than 83% this year, trading at 129 rupees before the market’s close on Tuesday.
né?. Reports from the Economic Times suggest that the startup had plans to join forces with Uber as a fleet partner.
Originally known as Gensol Mobility, BluSmart began as a fleet operator for Uber before transitioning into an all-EV rival. The probe also extends to BluSmart, a ride-hailing startup linked to Gensol that was once seen as a potential competitor to Uber in the South Asian market.
The Securities and Exchange Board of India (SEBI) has barred Gensol Engineering’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from holding key positions in the company and engaging in the securities market while the investigation is ongoing. Jaggi believes this is an interim step, not a final decision, and is confident that once all information is thoroughly assessed, their stance will be better understood.
According to the interim order, the regulator accused the Jaggi brothers of diverting a significant portion of the loan amounts for personal use, including luxury real estate purchases
