BluSmart, a ride-hailing service affiliated with Gensol Engineering Ltd., has reportedly ceased accepting new ride bookings through its app in several key areas of major cities, including Delhi-NCR, Mumbai, and Bengaluru.
This development follows the investigation by the Securities and Exchange Board of India (SEBI) that BluSmart's co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi, diverted funds intended for the purchase of electric vehicles (EVs) to acquire a luxury apartment in Gurugram's upscale DLF Camellias project.
Consequently, SEBI has barred both individuals from participating in the securities market until further notice, according to a report by Reuters.
Now that SEBI's findings are public, how did this situation with BluSmart unfold? BOOM explains the intricate web of fund diversion.
What does SEBI's investigation say?
In an interim order dated April 15, SEBI accused BluSmart co-founders Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the promoters of Gensol Engineering Ltd., of diverting company funds meant for buying electric vehicles (EVs). Instead of using the money for its intended purpose, SEBI found that the promoters used it for personal expenses and luxury purchases.
Some of these include a Rs 43 crore luxury apartment in Gurugram’s ultra-posh The Camellias, which overlooks a golf course, a Rs 26 lakh golf set from U.S.-based brand TaylorMade, and transfers of more than Rs 11 crore to their mother and spouses.
SEBI’s order came at a time when investors were, reportedly, already backing out of the company.
How has the SEBI order impacted Gensol’s stock?
Following SEBI’s announcement, Gensol’s shares took a steep hit. The very next day, the company’s stock price dropped by 5% to Rs 123, hitting the lower circuit. Over the past month, the stock has fallen by 48%. Since the beginning of 2025, it has crashed by a staggering 84%. This sharp decline reflects the market’s growing distrust and the fallout from the alleged financial mismanagement.
How did Gensol’s money flow to BluSmart?
Gensol Engineering Ltd. is a listed renewable energy firm headquartered in Ahmedabad, and it is the parent company of BluSmart, an EV-based ride-hailing platform. Founded in 2007 by the Jaggi brothers, Gensol is involved in solar energy solutions and electric vehicle manufacturing and leasing.
SEBI’s investigation revealed that Gensol borrowed Rs 978 crore from public sector lenders—the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC)—between 2021 and 2024. Out of this, Rs 664 crore was meant to procure 6,400 electric vehicles that would be leased to BluSmart.
However, in a February 2025 filing, Gensol said it had only acquired 4,704 EVs. This number was confirmed by its supplier, GoAuto, which valued the purchased vehicles at Rs 568 crore. This leaves an unexplained shortfall of around Rs 262 crore.
SEBI also noted that a Rs 5 crore advance paid to real estate company DLF by Anmol Jaggi’s mother, Jasminder Kaur, had its origins in Gensol’s funds. When DLF refunded this amount, it wasn’t returned to Gensol, but instead rerouted to another related entity.
Furthermore, Rs 42.94 crore was eventually paid to DLF by Capbridge, a related-party firm, towards the apartment purchase. The property was later registered in the name of a company where both Jaggi brothers are designated partners.
How did Gensol try to cover up its financial issues?
SEBI found that Gensol defaulted on a loan repayment on December 31, 2024. But instead of informing credit rating agencies (CRAs), the company kept submitting false "No Default Statements," falsely certifying that there were no delays or missed payments. This misled credit agencies and investors, creating a false image of financial health.
Where else was the diverted money sent?
According to SEBI, Gensol routed Rs 40 crore through its EV supplier GoAuto to another related-party company, Wellray Solar Industries. Wellray is almost entirely owned (99%) by Lalit Solanki, who worked as a Regulatory Affairs Manager at the Gensol Group until December 2018.
Wellray, in turn, transferred this money to four other entities. Eventually, Rs 39 crore from the total amount ended up with the Jaggi brothers—Rs 26 crore to Anmol Singh Jaggi and Rs 13 crore to Puneet Singh Jaggi.
Anmol used part of the funds he received to invest Rs 50 lakh in Third Unicorn, the startup founded by Ashneer Grover, and Rs 1.35 crore in BatX Energies, a lithium-ion battery recycling company based in Gurugram. He became a shareholder in both companies in March 2024.
SEBI also pointed out that Gensol misled the public and investors by falsely claiming it had received 30,000 pre-orders for its newly launched electric vehicles at the Bharat Mobility Global Expo in January 2025, even though there was no evidence to support this claim.
